Market regulator Sebi has urged the Supreme Court to reject the roadmap proposed by Sahara for the repayment of an outstanding amount of over R14,779.90 crore, saying the group’s past conduct, its persistent reluctance to comply with the apex court’s orders and unwillingness to sell its offshore properties “disentitles” it from any such relief.
Stating that roadmap proposed by Sahara should be rejected as the installments proposed are not in accordance with the judgments and orders of the apex court, Sebi further told the apex court that the conduct of Sahara during the proceedings, their persistent reluctance to comply with the judgments and orders and time and again seeking modifications/variations thereof instead of complying with the same disentitles them from any relief in the form of such proposals/road-maps. Moreover, the SC had earlier rejected various requests for variation of the terms of payments of the refund amount and the new plan is “is yet another attempt on the part of Saharas to seek such variation which is not permissible”, the market watchdog stated in its response to the Sahara proposal.
According to Sebi, the details of assets held by Sahara and as filed with the top court from time to time (including list of properties/assets submitted in a sealed cover) are far in excess of R14,779.9 crore (Sahara’s outstanding liability without interest). “Till date Saharas have been unwilling to sell the three offshore hotel properties owned by them, which have been allowed to be transferred, sold or encumbered by the SC way back on July 22, 2014 and for that purpose, various facilities were allowed to the detenues in jail… on being granted parole granted on May 6,2016, as extended from time to time, no details have been furnished till date regarding steps taken to sell the properties,” Sebi said in its application filed through counsel Pratap Venugopal.
While Sahara had told the apex court that R11,001.4 crore had been credited to it from time to time while the liability was R24,029.73 crore to the Sebi-Sahara Refund Account, Sebi said that the principal outstanding amount /liability of Saharas as on October 31,2016 is R14,779.90 crore and after taking into account interest payable by Saharas at 15% in terms of the judgment dated August 31, 2012, the net liability of Saharas works out to R47,326.85 crore (as on October 31, 2016).
The Sahara group had last month presented a roadmap to the SC for repayment of an outstanding amount of over R11,136 crore to Sebi and had proposed to clear its liability in 21 installments in two-and-a-half years to ensure “absolute” release of its chief Subrata Roy.
The application filed by Sahara India Real Estate Corporation and Sahara Housing Investment Corporation had proposed to pay R1,000 crore in equal installments of R200 crore by March 2017. It has also proposed to repay R2,700 crore by December next year in equal installments of R300 crore each month April onwards. It would repay R6,000 crore in six equal installments between January 2018 and April 2019, and the remaining amount of R1,436.68 crore would be cleared by July 2019, the two Sahara firms had said.