SC dismisses Sahara appeal for more time to refund investors

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SummaryThe Sahara Group’s last hope for an extension to refund R24,000 crore to investors by submitting the relevant documents with the Securities and Exchange Board of India failed, with the Supreme Court on Monday rejecting its plea for more time to comply with its December 5 order.

The Sahara Group’s last hope for an extension to refund R24,000 crore to investors by submitting the relevant documents with the Securities and Exchange Board of India (Sebi) failed, with the Supreme Court on Monday rejecting its plea for more time to comply with its December 5 order.

While dismissing the plea, a bench headed by chief justice Altamas Kabir pulled up the Sahara Group for failing to comply with its order: “If you have not refunded the amount as per our order, then you have no business to come here to court and ask for extension of time.” The bench further said that it had earlier granted time only once to ensure that investors get their money back.

As soon as the matter was taken up for hearing, Supreme Court Bar Association president M Krishnamani objected, stating the bench headed by the CJI should not hear the case as the order for refunding the amount to investors was passed by another bench.

“As a Bar leader and officer of the court, I have to say that keeping with the tradition of this court, this bench should not have heard this matter and the matter should go to the same bench for the modification of the order. Instead of going to hear, the proper recourse would be for the other bench to hear it. I am at pains to hear different types of rumours,” he said.

A furious justice Kabir asked the lawyer to refrain from making such statements without knowing anything about the case. “Why are you pre-empting our right to say something,” the chief justice asked Krishnamani, directing him to wait for the proceedings.

After senior counsel Ram Jethmalani insisted on giving him two minutes to make his submissions, justice Kabir further observed that “it’s an unfortunate application and should have been dismissed with costs”.

The chief justice’s bench in December had asked Sahara to pay R5,120 crore upfront and the balance in two instalments — R10,000 crore in the first week of January and the rest in the first week of February.

However, Sahara had told the court that it has already paid R5,120 crore, although it was to pay only R2,620 crore, claiming it made an extra payment of R2,500 crore “to provide buffer, if there are any miscalculations”.

Another bench headed by justice KS Radhakrishnan on February 6 issued contempt notice to the two group companies of Sahara and group founder Subrata Roy

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