Market regulator, the Securities and Exchange Board of India, on
Wednesday filed a petition with the Supreme Court seeking action against
the Sahara Group for not complying with the court’s orders.
The Supreme Court had on August 31 directed two unlisted Sahara group companies—Sahara India Real Estate Corporation (SIREC) and Sahara Housing Investment Corporation (SHIC)—to refund around Rs. 24,000 crore to investors from whom the group had collected money.
The court had also directed the group to hand over all documents submitted by the investor to Sebi within 10 days to verify the genuineness of the investors. The deadline expired on September 10.
The court had appointed retired judge, Justice B.N. Aggarwal, to oversee this. Mr. Aggarwal has already submitted his status report to the court saying that Sahara failed to hand over the documents.
However, the group failed to hand over the documents, prompting the market regulator to approach the apex court.
According to some media reports, the Sahara group had dispatched two truck-loads of documents to Sebi's headquarters, but this was not confirmed by Sebi or Sahara officials.
The case is likely to be taken up on Friday.
Sebi had last year ordered the companies to refund the money, with 15 per cent annual interest, after it found that the fundraising process did not comply with its rules. An appellate tribunal upheld the regulator's order. Sahara then moved the apex court challenging the tribunal’s decision. The court ruled against Sahara.
The Supreme Court had on August 31 directed two unlisted Sahara group companies—Sahara India Real Estate Corporation (SIREC) and Sahara Housing Investment Corporation (SHIC)—to refund around Rs. 24,000 crore to investors from whom the group had collected money.
The court had also directed the group to hand over all documents submitted by the investor to Sebi within 10 days to verify the genuineness of the investors. The deadline expired on September 10.
The court had appointed retired judge, Justice B.N. Aggarwal, to oversee this. Mr. Aggarwal has already submitted his status report to the court saying that Sahara failed to hand over the documents.
However, the group failed to hand over the documents, prompting the market regulator to approach the apex court.
According to some media reports, the Sahara group had dispatched two truck-loads of documents to Sebi's headquarters, but this was not confirmed by Sebi or Sahara officials.
The case is likely to be taken up on Friday.
Sebi had last year ordered the companies to refund the money, with 15 per cent annual interest, after it found that the fundraising process did not comply with its rules. An appellate tribunal upheld the regulator's order. Sahara then moved the apex court challenging the tribunal’s decision. The court ruled against Sahara.
