Will pay back R24,000 cr in 3 mths: Sahara

Written by fe Bureau | New Delhi | Updated: Sep 29 2012, 07:54am hrs
The Securities and Exchange Board of India (Sebi) on Friday told the Supreme Court that it has received several complaints from investors that they were being coerced to reinvest the amounts invested in Optionally Fully Convertible Debentures (OFCDs) into other schemes floated by the Sahara Group firms.

It said that Sahara firms Sahara India Real Estate Corporation (now known as Sahara Commodity Services Corporation) and Sahara Housing Investment Corporation (SHIC) have not only failed to submit documents within the prescribed time of 10 days as directed by the SC on August 31, but also failed to give a definite date by which they will be submitted.

...there has been no compliance by the appellants (Sahara firms) with the directions contained in the judgment and final order... The appellants, as an afterthought, are putting forward various excuses for their non-compliance with the directions... Furthermore, the appellants have embarked on a mis-information campaign and has got released several mis-leading advertisements in the national dailies, Sebi stated in its application.

However, the Sahara Group assured the court that it will refund the amount collected from the investors (R24,000 crore) within three months, as directed by the apex court. We will refund the amount. There is no question of going back, senior advocate Gopal Subramaniam, appearing for the company, told a bench headed by Justice KS Radhakrishnan.

He also pleaded with the bench to grant the firms some time to sort out the disagreement with Sebi, which has alleged that the company is not supplying all the documents pertaining to the investors to it as per the SCs August 31 order. The matter has been posted for further hearing on October 19.

The apex court on August 31 asked two Sahara Group companies to refund around R24,000 crore collected from investors under the scheme and furnish all documents in their custody, particularly the application forms submitted by the subscribers, the approval and allotment of bonds, and, all other documents to Sebi within a period of 10 days from the pronouncement of the order.