Expressing its inability to pay Rs 36,000 crore of investors' money, collected through illegal bond schemes, in 18 months, the Sahara Group on Tuesday termed the Supreme Court's June order as harsh.
Sahara Group on Tuesday expressed its inability to pay Rs 36,000 crore of investors’ money, collected through illegal bond schemes, in 18 months while terming Supreme Court’s June order as harsh.
Sahara told a bench headed by Justice TS Thakur that no business house in the world could pay R36,000 crore in 18 months. However, senior counsel Kapil Sibal, appearing for the group, said “the obligation to pay is not disputed”.
Sibal said he would move an application in a week, pointing to the difficulty in arranging the amount.
Senior counsel Arvind Dattar, appearing for Sebi, opposed Sibal’s plea, saying the group had, during earlier arguments, said it had enough resources to return investors’ money.
Sibal said even the income-tax department, through a statutory order, accepted the group’s stand that a substantial amount had been refunded to investors. The I-T tribunal had already accepted its stand that “85% of the money that we have given (to investors) is genuine”, said Sibal.
The Sahara Group is currently looking to sell its properties to raise money for the release of its chief, Subrata Roy, and other directors on bail.
After Gorakhpur Real Estate Developers offered to pay R110 crore for a 45-acre property in Gorakhpur, which Sahara has put on sale for R64 crore, the Supreme Court asked the developer to deposit 10% of the amount by Tuesday to prove bona fide. The bench posted the matter for further hearing on Monday.
Senior counsel Pradeep Kanth, appearing for Gorakhpur Real Estate Developers, drew the apex court’s attention to an alleged fraud played by the Saharas, saying the group had misrepresented facts by seeking permission to sell the property in Gorakhpur for R64 crore, which is 5% lower than the estimated value.