Sat rejects Sahara appeal against Sebi

Nov 30 2012, 01:18 IST
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SummaryThe Securities Appellate Tribunal on Thursday dismissed an appeal by two Sahara Group firms against Sebi in the high-profile case involving refund of about Rs 24,000 crore with interest to about 3 crore investors.

The Securities Appellate Tribunal (SAT) on Thursday dismissed an appeal by two Sahara Group firms against Sebi in the high-profile case involving refund of about R24,000 crore with interest to about 3 crore investors.

The Sahara firms, in their appeal, had sought the tribunal’s intervention in refund of investors' money and had accused Sebi of wrongly charging them of non-compliance with a Supreme Court order in this regard.

The tribunal, however, said that any further direction in the case can be sought for and granted by the Supreme Court alone and dismissed the appeal. “We, therefore, find the appeal premature as well as non-maintainable. Dismissed," SAT said in its order.

Passing the order on the appeal filed on November 27, SAT observed that “a contempt petition filed by the respondent Board (Securities and Exchange Board of India) and a review petition filed by the appellants (Sahara Group firms) against the order dated August 31, 2012, are already pending before Supreme Court."

The apex court had asked Sahara India Real Estate Corporation (SIRECL) and Sahara Housing Investment Corporation (SHICL) to refund an estimated R24,000 crore with an annual interest of 15%, while Sebi was directed to facilitate the refund of this money to about 3 crore bondholders of the two firms. The Supreme Court had asked these companies to furnish the documents related to these investors to Sebi within 10 days.

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