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Supreme Court gives SEBI free hand to seize properties of Sahara Group companies

The apex court also lambasted SEBI for not taking action against the companies—Sahara India Real Estate Corp and Sahara Housing Investment Corp—as per its 31 August 2012 order which had asked it to attach properties and freeze bank accounts of the companies

The Supreme Court on Wednesday gave market regulator Securities and Exchange Board of India (SEBI) free hand to freeze accounts and seize properties of its two companies for flouting court orders by not refunding Rs24,000 crore to investors.

 

The apex court also lambasted SEBI for not taking action against the companies—Sahara India Real Estate Corporation (SIREC) and Sahara Housing Investment Corporation (SHIC)—as per its 31 August 2012 order which had asked it to attach properties and freeze bank accounts of the companies.

 

Read: Sahara Case: What the Supreme Court hinted, by Dr Israni

 

 

The SC issued notice to the group to respond within four weeks why contempt action should not be initiated against the companies for not complying with its order.

 

Read: Supreme Court Order: Sahara unmasked, by Sucheta Dalal

 

“What steps are you taking? You are not taking any action. The judgement tells you what to do but you are doing it,” a bench of Justices KS Radhakrishnan and JS Khehar said.

 

SEBI submitted that it is taking action and issued notice to the companies and approached civil court in Bombay for freezing bank accounts.

 

Read: SEBI scores big with Sahara, by Sucheta Dalal

 

Not satisfied by its contention, the bench said that issuing notice is not enough and that SEBI has to follow its last year’s order.

 

“Why you gave notice and did not take action. You have to execute our order,” the bench said.

 

Read: Fallout of Sahara’s Defiance, by Sucheta Dalal

 

The apex court had on 31st August last year directed the two companies to refund around Rs24,000 crore to their investors within three months with 15% interest per annum for raising the amount from its investors in violation of rules and regulations.

 

In harsh observations against the companies, the court had said that such economic offences must be dealt with an “iron hand”.

 

Read: Supreme Court’s Sahara ruling: Salute to the judges, but a huge question mark before financial regulators, by Vinod Kothari

The Supreme Court on Wednesday gave market regulator Securities and Exchange Board of India (SEBI) free hand to freeze accounts and seize properties of its two companies for flouting court orders by not refunding Rs24,000 crore to investors.

 

The apex court also lambasted SEBI for not taking action against the companies—Sahara India Real Estate Corporation (SIREC) and Sahara Housing Investment Corporation (SHIC)—as per its 31 August 2012 order which had asked it to attach properties and freeze bank accounts of the companies.

 

Read: Sahara Case: What the Supreme Court hinted, by Dr Israni

 

 

The SC issued notice to the group to respond within four weeks why contempt action should not be initiated against the companies for not complying with its order.

 

Read: Supreme Court Order: Sahara unmasked, by Sucheta Dalal

 

“What steps are you taking? You are not taking any action. The judgement tells you what to do but you are doing it,” a bench of Justices KS Radhakrishnan and JS Khehar said.

 

SEBI submitted that it is taking action and issued notice to the companies and approached civil court in Bombay for freezing bank accounts.

 

Read: SEBI scores big with Sahara, by Sucheta Dalal

 

Not satisfied by its contention, the bench said that issuing notice is not enough and that SEBI has to follow its last year’s order.

 

“Why you gave notice and did not take action. You have to execute our order,” the bench said.

 

Read: Fallout of Sahara’s Defiance, by Sucheta Dalal

 

The apex court had on 31st August last year directed the two companies to refund around Rs24,000 crore to their investors within three months with 15% interest per annum for raising the amount from its investors in violation of rules and regulations.

 

In harsh observations against the companies, the court had said that such economic offences must be dealt with an “iron hand”.

 

Read: Supreme Court’s Sahara ruling: Salute to the judges, but a huge question mark before financial regulators, by Vinod Kothari

User

COMMENTS

Ubaldo C DSouza

4 years ago

Will the SEBI do what they have been suggested and enabled to do or will it be a 'you scratch my back, I'll scratch yours'!

Vinay Joshi

4 years ago

Why SEBI is not in contempt of SC?

Why action should not be initiated against SEBI? SC August 31st order had explicitly asked SEBI to attach properties & freeze all a/cs?

Why SEBI failed?

The learned counsel for SEBI Mr.P Venugopal, has pleaded that there were 'procedural' difficulties - in attaching & freezing! What were they?

He further submitted that a bench headed by CJI had granted extension.

CJI had not heard it ex-parte! so why SEBI's then counsel had not objected? The said hearing was on December 5.[granting extension]

Now Sahara's counsel Mr.Ram Jethmalani cleverly pleaded on Jan, 6th that they had mentioned this application before another bench headed by CJI & is posted for hearing on Jan, 8th. The ploy didn't work.

As a matter of fact PIL should be filed - in no way contempt of SC or intended - to unearth 30mn investors by conducting forensic audit by an international forensic audit team.

Lets see how SEBI works or what the Hon'ble CJI bench decrees on 8th.

Regards,
















Vaibhav Dhoka

4 years ago

SEBI has become scapegoat for political masters.SC should proceed with contempt action against SAHARA group forthwith.SAHARA's are of opinion that they can dodge SC order with help of political masters.

SC orders Karnataka to release 2.44 TMC water to Tamil Nadu immediately

The Supreme Court bench, headed by Justice RM Lodha, passed its order after receiving the report of the expert committee that had visited the Tamil Nadu part in the delta region

The Supreme Court on Thursday ordered Karnataka on Thursday to release 2.44 TMC (thousand million cubic feet) of Cauvery river water to Tamil Nadu for irrigating its standing crops in the delta basin.

 

The Supreme Court bench, headed by Justice RM Lodha, passed its order after receiving the report of the expert committee that had visited the Tamil Nadu part in the delta region and recommended that 2.44 TMC water be released for the standing crop.

 

Ignoring Tamil Nadu’s objections, the court said: “According to you, whatever you say should be accepted as gospel truth and the order be passed accordingly.”

 

The court’s observation came in the wake of Tamil Nadu objecting to the expert committee report and saying that it was not based on objective grounds.

 

Appearing for Tamil Nadu earlier this week, senior counsel CS Vaidvanathan sought 9 TMC of water for the state’s standing crops spread over six lakh hectares of land.

 

He said one-third of the crops spread over three lakh hectares of land had perished due to drought and the remaining crop in six lakh hectares area needed to be irrigated twice to save it.

 

Senior counsel Fali Nariman, appearing for Karnataka, contended that 40% of standing crops had been harvested and the rest was about to be harvested. Thus, Tamil Nadu needed no water for irrigation.

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