SC asks Sebi why delay in action against Sahara

It also pulled up the Securities and Exchange Board of India (Sebi) for failing to take action against the companies — Sahara India Real Estate Corporation (now known as Sahara Commodity Services Corporation) and Sahara Housing Investment Corporation — as per its August 31, 2012, directions that ordered attachment of properties and freezing of the companies’ bank accounts in case of default.

A bench comprising justices KS Radhakrishnan and JS Khehar gave four week to Sahara to explain why contempt action should not be initiated against it. The court also directed Sebi to file a status report within two weeks detailing what steps it had taken so far in compliance with the directions given to it in August.

Sebi counsel Pratap Venugopal told the bench that the regulator had issued notice to the companies, started proceedings to freeze their accounts and also approached a civil court in Mumbai for execution of the proceedings. However, the regulator doesn’t have powers under the Sebi Act to do so, he added.

Not satisfied by Venugopal’s contention, the bench said that issuing notice was not enough. “You have to execute our order... We have given you powers,” the bench said.

The

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