Sebi wants free hand in Sahara case, moves SC

Written by Indu Bhan | Indu Bhan | New Delhi | Updated: Apr 28 2013, 06:09am hrs
Seeks to restrain courts, govts from entertaining any Sahara plea

Wanting a free hand in the Sahara case, market regulator Sebi on Saturday moved the Supreme Court, seeking to restrain all the courts, central and state governments and other authorities from entertaining any plea by the Sahara group, its chief Subrata Roy or its directors that would hinder it from implementing the apex courts directions issued on August 31 last year.

The move assumes importance as Sebi had earlier sought the Supreme Courts permission to arrest and detain Roy and the two directors Ashok Roy Choudhary and Ravi Shankar Dubey for their failure to refund R24,000 crore it had collected in 2008-09 from the public, violating investor protection norms.

The apex court on August 31, 2012, had asked the two Sahara firms Sahara India Real Estate Corporation (SIRECL) and Sahara Housing Investment Corporation (SHICL) to refund the money by November 30 last year.

It also wants liberty to move any forum for vacation of any order that is creating any hindrance in the implementation of the apex courts directions.

All civil and judicial authorities in the territory of India shall act in aid of this Honble Court. Consequently, cabinet secretary and home secretary, Government of India, chief secretaries and director generals of police of all the states, national capital territory and all Union territories may be directed to ensure immediate compliance of steps taken and orders passed by Sebi or any other officer or officers authorised by him for implementation of the directions contained in the common order on August 31, 2012, the market regulator stated in its application.

Stating that such drastic measures were necessary to protect the interest of three crore investors, the market regulator said such directions would also ensure that all attempts made by Saharas promoter and the three directors not only to defy but frustrate the directions would be defeated and money would be realised without any delay for making payment to the genuine investors.

It also sought transfer of all petitions filed by the companies, Roy and directors from the Securities Appellate Tribunal and also the one plea filed by Sahara India in the Allahabad High Court so that these appeals could be heard along with the contempt petition pending in the apex court.