Deal with Sahara entities at your own risks: SEBI cautions investors

“Anyone transacting with Sahara India Real Estate Corporation, Sahara Housing Investment Corporation and their three promoters and directors would be doing so at their own peril,” market regulator SEBI said

Close on the heels of ordering attachment of bank accounts, investments and all other assets of two Sahara group companies and their promoters, including group chief Subrata Roy, the Securities and Exchange Board of India (SEBI) on Friday cautioned the investors and general public against transacting with these companies and persons.


“Anyone transacting with them (Sahara India Real Estate Corporation, Sahara Housing Investment Corporation and their three promoters and directors) would be doing so at their own peril,” market regulator SEBI said.


The regulator said that in furtherance to a Supreme Court order directing refund of investors’ money collected by these Sahara firms, it has ordered “attachment of all moveable and immoveable properties, bank accounts and demat accounts of these two companies and that of its promoters and directors namely Subrata Roy Sahara, Vandana Bhargava, Ashok Roy Choudhary and Ravi Shankar Dubey”.


“Investors and general public are advised to exercise caution and take note of the said orders before transacting with the aforesaid entities/persons in any manner whatsoever,” SEBI said in a public notice.


On 13th February, SEBI passed two separate orders, together running into 160 pages, directing attachment of properties and freezing of accounts.


It was after the Supreme Court said that the regulator was free to freeze the accounts and attach properties if Sahara firms were not complying with the apex court’s earlier orders of August 2012 towards refund of investors’ money totalling over Rs24,000 crore.


The assets ordered to be attached included those related to the group’s Aamby Valley resort town near Pune, other real estate assets in Delhi, Mumbai and at other places across the country, shares, mutual funds and various other investments.


Passing the attachment orders, SEBI said that the two companies had raised Rs6,380 crore and Rs19,400 crore, respectively from bondholders and “various illegalities” were committed in raising of these funds.


With regard to Subrata Roy and three other directors, namely Vandana Bhargava, Ravi Shanker Dubey and Ashok Roy Choudhary, SEBI ordered freezing of all bank and demat accounts of these four persons, as also attachment of all moveable and immoveable properties in their name with immediate effect.


Subsequently, the Sahara Group claimed that the actions taken by SEBI were based on “old facts” and the orders for attaching assets of individuals are incorrect on part of the market regulator.


It also said that it has already deposited with SEBI an amount of Rs5,120 crore that was in excess of its total liability towards refund to investors.




5 years ago

'Jung Mein Milawat'? - Only time can tell . . .

SEBI imposes Rs10 lakh penalty on individual in Ind-Swift Lab case

A probe by SEBI revealed Balwinder Singh had indulged in executing wash trade/self trades/fictitious trades in the scrip of the company from 1 August 2010 to 31 August 2011

The Securities and Exchange Board of India (SEBI) on Monday imposed a penalty of Rs10 lakh on an individual for alleged fraudulent dealings in shares of Ind-Swift Laboratories.


The market watchdog slapped a fine of Rs10 lakh on one Balwinder Singh and said that the penalty is “commensurate with the violations committed by him”.


“...It is established beyond doubt that the noticee had indulged into wash trade/self-trades/fictitious trades which are manipulative/unfair/fraudulent in nature,” SEBI said in an order.


A probe by SEBI into the alleged irregularities in the trading in shares of Ind-Swift Laboratories revealed Singh had indulged in executing wash trade/self trades/fictitious trades in the scrip of the company from 1 August 2010 to 31 August 2011.


These trades, the regulator, said were in violation of the norms on prohibition of fraudulent and unfair trade practices.


The regulator said that Singh is the proprietor of Gogia Investments, a registered sub-broker of Kotak Securities at NSE and BSE.


According to SEBI, Singh had traded in the scrip of Ind-Swift Laboratories through three different brokers including Kotak Securities at both BSE and NSE.




4 years ago

Hello, It looks many companies will take path of Birla Power, IndSwift, Micro Technologies, OmniTech, etc., All the money invested is being used by the Company for finding route to cheat the poor investors. If Govt Of India, RBI and regulatory agencies are not going to take control of the situation soon all companies will use the option ...why to pay-back the deposits, Govt regulation has a big hole ...better use it and ask for 10 years or 20 years as per wish to pay. Small investors are advised by Bajaj Capital, Blue Chip, Integrated Investments, IIFL and other companies to do deposits in these companies...say they have lots of research and then only recommend to invest. Now many companies are not paying the interest or principal invested....

AMC NoAH: Bringing transparency through self-regulation

A new sub-group carved out within Association of Medical Consultants hopes to achieve uniformity in the common operating practices as well as bring more nursing homes in the cashless network

The Association of Medical Consultants (AMC) aims to address the needs of the insurance sector and nursing homes by creating a group called Network of AMC Hospitals (NoAH). Out of the 1,500 nursing homes within the AMC fold, 217 have agreed to be part of AMC NoAH. This number is expected to grow to 300 by March 2013. These nursing homes will offer common billing format, common cashless authorisation format and display of key hospital tariffs.

One of the major issues for customers of medical services is the lack of transparency in the charges by nursing homes and hospitals as well as possible differential pricing if the customer is insured. AMC NoAH nursing homes will display the key tariff charges at the reception of the hospital for information of the patients. These charges would be levied across the board and shall not vary for insurance or non-insurance patients.

At the Bombay High Court hearing (12 February 2013) of the public interest litigation filed by social activist Gaurang Damani, the AMC was able to come up with indicative rates for 42 standard ailments with disclaimers about the rates excluding professional fees and surgeon fees, which may vary. The Insurance Regulatory and Development Authority’s (IRDA) legal representative agreed to review the documentation of rates prepared by the AMC.

AMC NoAH has tied up with Bajaj Allianz to offer its policyholders cashless facility in all member nursing homes. It will also offer 7.5% discount on the bill to the insured. Star Health and other insurance companies may tie-up with AMC NoAH. The progress to bring more nursing homes to be part of government insurance companies’ preferred provider network (PPN) has been at a snail’s pace. Even New India Assurance’s general manager who attended Moneylife Foundation’s recent mediclaim seminar agreed that progress is slow in Mumbai and Bangalore. Whether AMC NoAH can resolve the standoff between government insurers/TPAs (third party administrators) and nursing homes can only be known in future.

Another benefit for consumers will be that the AMC NoAH nursing homes will need compulsory accreditation from the group and hence standards will improve. The levels will be minimum, optimum and excellent. Currently, the accreditation is optional for AMC members. It is obvious that some AMC member nursing homes may not want to be part of self regulated group (AMC NoAH).

Consumers may ask what may be the possible reason for AMC NoAH to offer pro-customer initiatives. It could be the growing tendency for mediclaim policyholders and the rich class to utilize corporate (high-end) hospitals for simple fever, surgery of hernia/hydrocele/appendicitis that can be easily managed in a nursing home having two to 75 beds facility. AMC NoAH wishes to correct this anomaly. As per one AMC NoAH official, “There is excellent quality of doctors at small nursing homes.”

On 28 January 2013, The Times of India carried an article on Mumbai’s nursing homes shutting shop. It quotes a doctor who shut his nursing home stating “Nursing homes are no longer sought after due to the popularity of insurance. People want to go to hospitals that are generally better equipped.” With value-added services, transparency and uniformity in procedures, AMC NoAH may be taking the steps to reverse this trend which could be bleeding its business.



nagesh kini

5 years ago

As one present at last PIL hearings in at the Bombay High Court heard by two judge bench presided by Chief Justice, I was dismayed by the absolutely callous and lack luster attitudes of the stake holders - particularly the medical fraternity comprising the family physicians, nursing homes and large multi-speciality hospitals offering Five and Seven Starred Hospital facilities charging equally exorbitant rates.
It is well known that doctors as well as hospitals and nursing homes always practice dual rates - one for patients reimbursed by insurance/employers and another paying out of their own. Their argument is "After all some one else is paying and not you. So it shouldn't make you any difference(!)" In the long for you and the premium shoots up to recoup this.
Despite being given enough opportunity by the Court to furnish a "bucket" or a range of rates high and low end for ailments,the consultants chose to select only 42 sickness without assigning any reasons as to why only these and not the others! The Association of Hospitals constituting essentially all of Mumbai's extremely high brow high end medical tourism hang outs chose to give a short shift to the High Court notice by filing a vague one page response conveying absolutely nothing meaningful at all.
The Insurance Regulator appeared to be taken aback on learning that insurance companies are incentivizing the TPAs to reduce and reject claims. TPAs are found to not only process but settle the claims acts that are in fact totally contrary to the Insurance Act and IRDA instructions. It was also conceded in the Court that complex high value claims are verified by under qualified unani, homeopaths, aryuvedics and veterinarians who merrily reject and reduce claims which the insurance companies are only to accept as it suits their bottom lines!

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