Subrata Roy-led Sahara Group review plea in Rs 24,000 cr case rejected by Supreme Court

Jan 09 2013, 20:48 IST
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SummarySC directs Sahara's two companies to refund money to investors with 15%.

The Supreme Court on Wednesday dismissed Sahara Group's plea for review of its verdict directing its two firms to refund around Rs 24,000 crore to their investors with 15 per cent interest per annum. The Sahara group is led by Subrata Roy

A Bench of Justices K S Radhakrishnan and J S Khehar, which had passed a slew of orders against the group on August 31 last year, rejected Sahara's plea.

Sebi had ordered Sahara India Real Estate Corporation Ltd (SIRECL) — now known as Sahara Commodity Services Corporation Ltd — and Sahara Housing Investment Corporation Ltd (SHICL) to refund money collected through the optionally fully convertible debenture (OFCD) route with 15 per cent interest.

“All the records placed before us were meticulously examined and dealt with. Review petitions are, therefore, not entertained and, accordingly, stand dismissed,” the Bench said in its order.

The Bench said all the contentions raised by the companies were considered by it while passing its August 2012 verdict and there is no need to review the same.

“We have carefully gone through the grounds raised in the review petitions filed by the appellants,” the court said.

“We also do not find any inconsistency in the views expressed by both of us. On the other hand, all the contentions, legally and factually, raised by the appellants were examined, addressed and answered on all possible angles and dimensions,” the Bench said.

The verdict on the review plea assumes significant as the firms have again filed a fresh application for extension of time for paying back to their investors.

Although the August 31 verdict was passed by a bench of Justices Radhakrishnan and Khehar but another Bench headed by Chief Justice Altamas Kabir on December 5 had modified the judgement granting the group nine more weeks to pay back Rs 24,000 crore with interest to over three crore investors.

The Bench headed by Justice Kabir had passed the order despite strong objections from SEBI and association of investors.

SEBI had strongly opposed the order dictated by Justice Kabir and said it was not right to modify the earlier verdict given by a different Bench and submitted that Sahara's plea must be heard by a bench of justices Radhakrishnan and Khehar which had passed the verdict against the Group's two companies.

The Sahara group had yesterday again mentioned the case before a Bench of Justice Kabir, who agreed to hear its plea for extension of time to refund

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