SC raps Sahara Group for dragging feet on refunds

Sahara had moved the SC against the refusal of the Securities and Appellate Tribunal to accept a deposit or pay order of Rs 5,120 crore, arguing it had fulfilled the court order directing a full refund of Rs 17,400 crore to all its investors by November 30, the deadline set by the apex court.

The apex court had said that if the group failed to meet the payment deadline, its assets could be seized to enable full refund of money to 3.3 crore investors. The group claims it had offered the money to Sebi, which declined it, prompting it to move the tribunal, which last week refused to accept the money saying a higher court was already seized of the matter.

Sahara's rush to the apex court was triggered by Sebi's decision to write to 88 banks seeking account details of the companies and writing to secretaries of two states inquiring about the firms' moveable and immoveable assets.

“Reading the said letter in its entirety, it is clear that Sebi is taking steps towards attachment of assets/accounts on the basis that the appellants are in non-compliance of the August 31 judgment and that, as per the said judgment, the market regulator is entitled to attach /sell assets/accounts of the appellants,” the Sahara firms said in their appeal.

While Sebi has filed a contempt of court application with the Supreme Court against Sahara for violating court orders, the latter had

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