If Subrata Roy and three other promoters, directors of Sahara fail to appear before SEBI on 10th April, the market regulator would ex parte settle the terms of proclamation of sale of their and the companies' assets
The Securities and Exchange Board of India (SEBI) has summoned Sahara group chief Subrata Roy and other top executives for a personal appearance on 10th April before the market regulator.
SEBI, on 26th March had issued the summons to Mr Roy, and three directors Vandana Bhargava, Ashok Roy Choudhary and Ravi Shankar Dubey and wants to ascertain details of their personal assets as well as assets and investments of the Sahara group companies.
The market regulator had also asked Sahara India Real Estate Corporation and Sahara Housing Investment Corporation and their four promoter, directors to provide details of their assets and investments before 8th April.
In case, the Sahara executives decide not to appear before SEBI, the market regulator may settle ex-parte the terms of proclamation of sale of their and the companies’ assets.
On 13th February, SEBI passed two separate orders, together running into 160 pages, directing attachment of properties and freezing of accounts. It had said that in furtherance to a Supreme Court order directing refund of investors’ money collected by the two Sahara group companies, it ordered “attachment of all moveable and immoveable properties, bank accounts and demat accounts of these two companies and that of its promoters and directors Subrata Roy, Vandana Bhargava, Ashok Roy Choudhary and Ravi Shankar Dubey”.
It was after the Supreme Court said that the regulator was free to freeze the accounts and attach properties if the 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.
On various occasions, the Sahara group had accused SEBI and its top officials, including UK Sinha of not providing an opportunity for a meeting to present its points of view.
Last week too, Sahara in a statement
had accused SEBI chief UK Sinha of not providing it an opportunity since last one year. Sahara said that “rich men’s SEBI do not understand, recognise poor Investors”.