The Securities and Exchange Board of India (SEBI) has moved the Supreme Court seeking the detention of Sahara Group Chairman Subrata Roy for violating the Court’s orders.
Taking stern action against Sahara Group in the high-profile investor refund case involving over Rs 24,000 crore (Rs 240 billion), market regulator Securities and Exchange Board of India had in February ordered the freezing of bank accounts and attachment of all properties of two group firms and top executives, including Subrata Roy.
SEBI's action followed directions from the Supreme Court. Passing two separate orders against Sahara Housing Investment Corporation Ltd and Sahara India Real Estate Corporation Ltd, SEBI said that the two companies had raised Rs 6,380 crore (Rs 63.80 billion) and Rs 19,400 crore (Rs 194 billion) respectively from bondholders and various illegalities were committed in raising of these funds.
The Supreme Court in August last year had asked Sahara Group firms to refund the money with 15 per cent interest and had asked SEBI to facilitate the refund.
In December, the Sahara Group was allowed to pay the money in three installments, including an immediate payment of Rs 5,120 crore 9rs 51.20 billion), followed by an installment of Rs 10,000 crore (Rs 100 billion) in the first week of January and the remainder by the first week of February.
In its orders passed on Wednesday, SEBI said that neither of the two installments was paid and therefore it is constrained to take necessary action as per the Supreme Court’s orders.
With regard to the payment of Rs 5,120 crore, Sahara Group has claimed that only Rs 2,620 crore (Rs 26.20 billion) remained to be refunded to investors and it has already paid Rs 19,400 crore (Rs 194 billion) to the bondholders.
Meanwhile, the Securities Appellate Tribunal has fixed its final hearing on March 23 on a plea by Sahara chief Subrata Roy against market regulator Sebi's attachment order on bank accounts and properties of two group firms and their top executives.