Sahara files contempt against SEBI

The initiation of contempt proceedings against SEBI by two Sahara Group Firms have been moved to the Supreme Court, alleging that SEBI’s demand of Rs 62,602 crore was a notorious attempt to stretch the instructions of the apex court.

In compliance with the earlier orders of the court for the payment by the firms, SEBI had moved to the apex court. Subrata Roy, the group’s Chief is to be taken into custody if the court orders are not met.

The Contempt Plea made by the two firms, Sahara Housing Investment Corporation Ltd. (SHICL) and Sahara India Real Estate Corporation Ltd. (SIRECL) alleges that SEBI has blatantly and willfully disobeyed the directions of the court.

The plea states that SEBI violates the specified orders of the apex court on 6th February 2017 by demanding the firms to deposit Rs 62,602 crores. At present, SEBI should only be concerned about the principal amount as the interest will be added later. The demand by SEBI was also an alleged attempt to cause public outrage against Sahara Groups and mislead the apex court.

SEBI’s chairman, Ajay Tyagi and two others have been accused of violating several orders of the apex court, by the fresh plea made by the Sahara firms.

The plea also states that SEBI is completely disregarding the order of the apex court, dated of 6th February 2017 and has kept on including the interest amount against the principal amount in that order.

Furthermore, the plea claims that it seems as though specific vested interests have been developed for the evasion of the verification process by SEBI through flimsy excuses. It is also stated that against the principal amount of Rs 24092.73 crores, an amount of Rs 22,500 crores is there in the SEBI – Sahara Refund Account and only 1,529 crores should be deposited in the principal amount by Sahara.

SEBI has nor conducted the verification process of 3.03 crore investors and refunds, for more than eight years. The company stated that this is a vital point of interest for the SEBI-Sahara dispute and its resolution. SEBI on the hand has stated that Sahara firms have grossly violated the ordinance passed by the court, in respect to the amount collected in its entirety along with interest and its deposition.

The apex court ordered the Chief of Sahara and two of its directors to personally appearing before the court to reach the case of their alleged failure in returning Rs 25,700 crore of the investor’s money. The court further stated that the efforts of Sahara Group do not inspire it is paying back the investor’s money.

Earlier, Rs 20,000 crore were deposited in the SEBI-Sahara account, which included the principal amount of Rs 15,000 crore and interest of Rs 4,800 crore, noted the apex court.

Source: Economic Times