Sebi on Wednesday ordered the attachment of bank and demat accounts of Sahara Group chief Subrata Roy and three others to recover Rs 6.48 crore for violating regulatory norms by two group companies. The recovery proceedings have been initiated against these four persons for violating regulatory norms in the issuance of optionally fully convertible debentures (OFCDs) by two group companies. Apart from Sahara, others whose bank and demat accounts were attached are Ashok Roy Choudhary, Ravi Shanker Dubey and Vandana Bharrgava.
The undistributed funds totalling over Rs 25,000 crore lying with the capital markets regulator Sebi's account have come back into focus after the demise of Sahara Group's chief Subrata Roy. Roy passed away in Mumbai on Tuesday night at the age of 75 after battling a prolonged illness. He faced multiple regulatory and legal battles in connection with his group firms that were accused of circumventing regulations with ponzi schemes, allegations his group always denied.
Sahara Group chief Subrata Roy passed away on Tuesday due to a cardiorespiratory arrest after a prolonged illness, a company statement said. He was 75. He was 75. According to the company statement, he passed away at 10.30 pm due to cardio-respiratory arrest following an extended battle with complications arising from metastatic malignancy, hypertension, and diabetes.
Sebi's action on Sahara is showing results, but problems remain.
Market regulator Sebi has begun prosecution proceedings against two Sahara firms and their top officials, while accusing them of failing to provide documents related to three crore investors as per a Supreme Court order.
In the high-profile case involving repayment of money to bondholders of two Sahara group firms, the Securities and Appellate Tribunal on Thursday dismissed a plea for extension of deadline for submitting investor documents to the market regulator Sebi.
The company is seeking more time to submit documents related to about three crore investors in the case involving two of its group companies.
The Sahara group today moved the Supreme Court seeking review of the verdict ordering it to refund Rs 24,000 crore, raised from investors through Optionally Fully Convertible Debentures (OFCDs).
The companies have 90 days to deposit the money with Sebi, which has been tasked by the Supreme Court to return the money to the investors.
Court also questioned market regulator's lack of action.
In a major setback to the Sahara Group, the Supreme Court on Friday directed two of its companies to refund around Rs 17,400 crore to their investors within three months with 15 per cent interest.
A Sebi counsel said the caveat, filed on Saturday, aims to prevent any ex parte decisions.
The Supreme Court on Tuesday said that the Securities and Exchange Board of India was entitled to seek all necessary information from two Sahara group firms on how resources were being raised but refused to stay the companies' ongoing fund-mopping exercise.
The order, concerning debentures issued by two group companies, is subject to Supreme Court clearance
The regulator, in a public notice, said investors of Sahara India Real Estate Corporation Ltd and Sahara Housing Investment Corporation Ltd should take investment decision at their own risk.
Sahara made an overseas direct investment against RBI rules.
The case related to two Sahara Group firms --Sahara Housing Investment Corporation Ltd and Sahara India Real Estate Corp Ltd -- raising more than Rs 24,000 crore (Rs 240 billion) from an estimated 3 crore (30 million) investors through issuance of certain bonds between 2008-2009.
Genuine investments identified so far is Rs.1.08 cr out of around Rs 24,000 cr.
Sebi says Sahara investors refunded over Rs 42 cr.
The sale is to generate the bail money for the release of Sahara Group chief Subrata Roy.
The apex court on August 31 last year directed the two Sahara group companies to refund the money to their investors within three months with 15 per cent interest per annum.
'Two esteemed foreign investors with huge funds are coming with us in our real estate and city development businesses.'
Sebi says it will directly transfer the refund money to the bank accounts of genuine investors.
Sahara says awaiting further clarity on issue from regulator, suggests 'human error' or investor confusion led to mismatch.
Citing the SC order in Sahara case, Sebi has passed orders against at least five companies and 21 individuals charged with collecting thousands of crores fraudulently
A bank account is a must to get the refund and those without it have been asked by Sebi to open an account with a scheduled bank.
The income tax (IT) department seems to have quietly thrown a spanner in the works on the Securities and Exchange board of India (Sebi)'s two-year-long efforts to implement the Supreme Court order against the two Sahara group firms Sahara India Real Estate Corporation (SIRECL) and Sahara Housing Invest Corporation (SHICL).
As many as 3,268 title deeds in Sebi's possession would undergo scrutiny and be prepared for sale.
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