The Supreme Court has issued a notice to the Sahara Group, asking them to explain why they haven’t deposited ₹10,000 crore with SEBI, as per the Court’s 2012 order. The order had directed Sahara to deposit ₹25,000 crore with SEBI. To date, Sahara has deposited ₹15,000 crore, which is currently held in the SEBI-Sahara fund. However, there has been no clarity on the remaining amount.
The Court has also directed Sahara to submit a list of properties that can be sold to raise the remaining funds. Sahara has promised to provide this list by September 5.
A bench comprising Justices Sanjiv Khanna, Bela Trivedi, and M.M. Sundresh expressed concerns over the delay, noting that more than 10 years have passed since the order was issued, and the remaining ₹10,000 crore is still outstanding. The Court asked Sahara to clarify how they plan to arrange for this money.
Senior advocate Kapil Sibal, representing Sahara, argued that the company hasn’t had the right opportunities to sell its properties to raise the required funds. He also mentioned that there has been a lack of interest from buyers in purchasing Sahara’s properties.
In response, the Court disagreed, stating that Sahara has had ample opportunities to sell its assets, and there are no restrictions on selling Sahara family properties.
Background of the Case
The case dates back to August 2012, when the Supreme Court ordered Sahara Group’s two companies, Sahara India Real Estate Corp and Sahara Housing Investment Corp, to refund ₹24,000 crore to more than two crore small investors. The investors had put their money into Sahara’s convertible debentures between 2008 and 2011. SEBI had found that the funds were raised in violation of regulatory norms.
Following this, Sahara was ordered to deposit ₹24,000 crore with SEBI. However, Sahara claimed that they had already refunded more than 95% of the investors directly. The matter is scheduled for further hearing on Wednesday.
Implications and Next Steps
This ongoing legal battle has significant implications for the Sahara Group, as failure to comply with the Supreme Court’s order could result in further legal consequences. The Court’s demand for transparency and accountability reflects its commitment to protecting the interests of small investors.
The upcoming hearing on Wednesday will be crucial in determining the next steps for both Sahara and SEBI. The Supreme Court’s decision will likely have a lasting impact on the group’s future operations and its ability to fulfill its obligations to investors.
Stay tuned for more updates on this developing story.
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