The market regulator Securities & Exchange Board of India (SEBI) on Tuesday told the Supreme Court that the real estate arm of the Sahara group of companies had no right to mobilise Rs.27,000 crore from 30 million investors through debentures without complying with the regulatory regime.
Sahara India Real Estate Corp has blamed the market regulator Securities and Exchange Board of India (SEBI) for taking up the issue of Sahara group of companies mopping up Rs 17,400 crore through debentures and ordered their refund. Sahara has this plea before the Supreme Court on Wednesday. Senior counsel Fali Nariman, appearing for Sahara India Real Estate Corp, told the apex court bench of Justice KS Radhakrishnan and Justice JS Khehar that the SEBI took up the matter even though there was no complaint from any investor.
The Supreme Court on Friday, Jan 20, gave two Sahara group companies three weeks to choose between two courses to secure investments made by the public in their controversial Optionally Fully Convertible Debentures (OFCD) scheme.
Supreme Court stayed a tribunal order directing two Sahara group companies to refund 174 billion rupees to investors, but sought details of their assets and liabilities on Monday, Nov 28.
The Sahara group’s appeal against the order of the Securities Appellate Tribunal (SAT) will come up for hearing in the Supreme Court on Monday, Nov 28.
Sahara’s defiance against the market regulator SEBI seems to have opened the can of worms for the company.
The two Sahara Group companies have moved the Supreme Court challenging the sectoral tribunal’s order asking the Group to refund around Rs.24,000 crore to investors.
The SAT on Tuesday, September 18, upheld an order passed by SEBI against two Sahara group companies and directed them to return money raised from the public in violation of securities regulations with an interest of 15%.
The Sahara group on Thursday, September 15, said the Law Ministry had last year taken a view that the Securities and Exchange Board of India (SEBI) did not have jurisdiction over unlisted firms.
Sahara India Real Estate Corporation had garnered investments from over 2 crore investors through three separate securities, according to an affidavit the company filed on Wednesday, September 14.