Companies & Sectors
Sahara seeks review of SC verdict on refunding Rs24,000 crore

Interestingly, Sahara filed the review petition a week after promising to the apex court that its two companies would refund the money within stipulated time frame

New Delhi: The Sahara group on Friday moved the Supreme Court seeking review of the verdict ordering it to refund Rs24,000 crore, raised from investors through optionally fully convertible debentures (OFCDs), reports PTI.


Challenging the apex court's 31st August verdict on 55 counts, the group sought the hearing of its review petition in the open court.


Setting the deadline to refund the money, the apex court had said if the group companies -- Sahara India Real Estate Corporation (SIREC) and Sahara Housing Investment Corporation (SHIC) -- fail to refund the amount, SEBI can attach properties and freeze bank accounts of the companies.


It had asked the companies to refund the money to their investors within three months with 15% annual interest.


It had also asked Sahara to furnish all its documents to SEBI and also appointed one of its retired judges, Justice BN Aggarwal, to oversee the action taken by SEBI against the two Sahara group firms.


Interestingly, the group filed the review petition a week after promising to the apex court that its two firms would refund the money within the stipulated time frame.


"We will refund the amount. There is no question of going back," senior advocate Gopal Subramaniam, appearing for the company, had told the apex court on 28th September.




4 years ago

Being an investor myself, I can relate to the fears and uncertainties of people in times like these. But,with a company like “Sahara”, these fears seem irrational. They have stood strong for the past 33 years,and braved the storms of resentment and injustice. I see the current situation also as a malicious intent to destabilize the image and position of the company. I would request all my fellow investors to support Sahara, in these turbulent times and have patience and faith in this company.

David N

4 years ago

Was Sahara fair in raising such large amount by public deposits? May be Sahara is a clean corporation which would not misuse funds, but think of fly by night operators who could vanish with money raised from public like the Teak Farm Promoters of the Nineties! Companies have to abide by rules and regulations and there can not be exceptions...

Jignesh Shah hints at launching SME platform on MCX-SX


Shah said that at least 1% of the 30 million SMEs have strong balance sheets to get AAA ratings and can look at raising money from the primary market
Mumbai: Announcing MCX Stock Exchange's intent to have a dedicated platform for small businesses, the soon-to-be-launched bourse's promoter and vice-chairman Jignesh Shah on Friday said small and medium enterprises (SMEs) should aspire to raise up to $20 million annually through such platforms, reports PTI.
"Our entrepreneurs are best in class. They require risk capital. If China can raise $12 billion in fresh capital, I think we have to aspire to raise a minimum $10-$20 million of fresh capital by SMEs," Shah said speaking at an industry conference.
The country's first privately promoted bourse MCX-SX, which has announced to go live before Diwali (November) after a protracted battle with the regulator Securities and Exchange Board of India (SEBI), will definitely be launching a dedicated SME platform as has been done by its rivals BSE and NSE, Shah told PTI on the sidelines.
However, he declined to share a timeline for the same.
Shah said that at least 1% of the 30 million SMEs have strong balance sheets to get AAA ratings and can look at raising money from the primary market.
Citing the studies and roadshows done by MCX-SX in the recent past, he said many SMEs depend on the informal system for their financing needs, paying up to 2% per month for debt.
He cited how in spite of such a high cost of servicing debt, the businesses continue to remain competitive and wondered the benefits which will accrue if they shift to the formal way of finance and access the equity markets.
Both the BSE and NSE have launched dedicated SME platforms earlier in the year amidst fanfare after the Sebi gave its nod for such exchanges to boost the small businesses.
Already a few companies have listed on these two platforms.
"We should not be happy (only) about inaugurating an exchange for SMEs, but there should be a market model structure which suits SMEs' requirements, then only it will work," Shah said.
He further said private equity, venture capital and angel funds will invest in companies only if they are confident of an exit route, which can be made easy by the formally platforms like exchanges.
Shah also welcomed the decision to amend the FCRA (Forward Contracts Regulations Act) taken by the Cabinet yesterday, saying it is a very big positive step.
The government yesterday cleared the new FCRA Bill which seeks to provide complete autonomy to the commodities FMC and to introduce new categories of products.


Telcos move HC against Panchayats levying fees for mobile towers

The petition, filed by Vodofone Infratel, Bharati Infratel and Indus Tower alleged that Gram Panchayats in rural Maharashtra are collecting exorbitant fees in the name of 'Development Charges' for granting NOC

Mumbai: A petition in the Bombay High Court has alleged that Gram Panchayats in rural Maharashtra were collecting exorbitant fees in the name of 'Development Charges' for granting 'no objection certificate' (NOC) to companies erecting mobile towers in villages under their jurisdiction, reports PTI.
This has not only seriously affected their business but also deprived people in the rural areas of mobile network services, the petition, filed by Vodofone Infratel, Bharati Infratel and Indus Tower, contended.
The petition further alleged that some members of Gram Panchayats go in for negotiations with the companies and demand cash for granting NOC. It becomes difficult for the companies to pay cash without getting receipts as this money cannot be accounted for.
Development Charges collected by Gram Panchayats for allowing mobile tower in villages range from Rs30,000 to Rs1 lakh or more, the petition submitted.
The petition contended that the Rural Development Ministry of the State Government had recently written a letter to the CEOs of all Zilla Parishads in Maharashtra asking them to take action against Gram Panchayats who were collecting money for granting NOC to mobile towers in villages.
The letter had mentioned that the practice of collecting money by Gram Panchayats for issuing NOC to mobile towers was not correct and should not be followed.
The petition demanded immediate implemention of this letter issued by the Rural Development Ministry.
It was further alleged that some Gram Panchayats also demand Property Tax for errecting mobile towers and this was six times more than the prescribed limit. The petition demanded that property tax may be charged as per normal rates.
The petition is expected to be heard on 15th October by a bench headed by Justice AM Khanvilkar.


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