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 Supreme Court directed Sahara India Real Estate Corp. and Sahara Housing Investment Corp. to file a detailed affidavit explaining how they plan to protect the interests of 23 million investors.
The firms have been asked to provide the balance sheets for 2010-11 and statements of accounts for November 2011 by Jan. 8–the next hearing date. The Supreme Court also issued notices to the Central Government and to the Securities and Exchange Board of India, seeking their responses to Sahara group’s plea.
In June, SEBI–India’s market regulator–directed the two companies to return money they raised from investors by issuing six optionally fully convertible debentures.
The Securities Appellate Tribunal upheld the order on Oct. 18, saying the amount will have to be repaid within six weeks.
SEBI said the fundraising by Sahara Commodity Services Corp. and Sahara Housing Investment Corp. was illegal.
Sahara India Real Estate Corp. is now known as Sahara Commodity Services Corp. Ltd.
Officials at SEBI and Sahara Group couldn’t immediately be reached for comment.
