Describing the SAT order asking its two companies to repay investors as shocking, the Sahara group said it will appeal against the order in the Supreme Court
Mumbai: Rejecting the appeals of Sahara Group companies, the Securities Appellate Tribunal (SAT) on Tuesday asked the group to refund the money raised through Optionally Fully Convertible Debentures (OFCD) to investors within six weeks, reports PTI.
“...both the appeals are dismissed...The appellants in both the appeals shall now repay within six weeks from today the amount collected from investors on the terms as set out by the whole time members (of SEBI) in the impugned order,” SAT said in its order.
While dismissing the appeal filed by Sahara Group companies against the Securities and Exchange Board of India (SEBI) order, it held that the market regulator has jurisdiction over such fund raising schemes.
“...we may mention that in view of our findings that OFCDs issued by the company are securities and that the issue was a public issue requiring mandatory listing and that SEBI has the jurisdiction under the SEBI Act to deal with all kinds of securities and companies, whether listed or not...,” the order said.
It could not be immediately ascertained how much money the Sahara companies would have to refund to investors who had parked their funds as OFCDs.
SAT has given the two companies—Sahara India Real Estate Corporation (now known as Sahara Commodity Services Corporation Ltd) and the Sahara Housing Investment Corporation—six weeks to return the money.
SEBI had in June asked the two Sahara group entities to return money collected from millions of investors through a financial instrument OFCD citing violation of regulatory norms.
The Sahara Group had challenged the SEBI order in SAT. It contended that SEBI has no jurisdiction over the issue as the companies involved were not listed. It maintained that entities involved were privately held companies and were under the jurisdiction of the ministry of corporate affairs (MCA).
A similar issue was raised by Sahara in the Supreme Court which had asked it to approach the SAT in the matter.
Dismissing the contention of Sahara which was represented by senior advocate Fali S Nariman, the SAT order said: “This argument has no merit... A plain reading of Regulation... leaves no room for doubt that the regulations apply to all public issues.”
SEBI had earlier in June had asked the two companies to refund the money raised from hybrid instrument OFCD to investors along with 15 interest.
The two companies and its promoter Subrata Roy Sahara, and the directors—Vandana Bhargava, Ravi Shankar Dubey and Ashok Roy Choudhary—jointly and severally were told to refund the money collected.
Besides, the regulator had also restrained the entities from accessing the securities market for raising funds, till the time payments are made to the satisfaction of SEBI.
Although the total amount raised by the two companies is not known, the Sahara companies have been raising money since 2008. The companies have been collecting money through different schemes from investors which has been estimated at several millions.
The companies had failed to apply for and obtain listing permission from recognised stock exchanges, SEBI had said in its earlier order.
Meanwhile, describing the SAT order asking its two companies to repay investors as shocking, the Sahara group said it will appeal against the order in the Supreme Court.
“We have decided to go in for appeal against the impugned SAT order in the Horourable Supreme Court,” Sahara said in a statement.
It said the SAT order was ‘unbelievably shocking’ and was in contradiction to the views expressed by many authorities earlier on similar issues.
“We have been left speechless and astonished to see the verdict of SAT. Our firm belief is that nobody can prove right as wrong,” it said.
The statement came in wake of the SAT order which rejected its appeal against SEBI verdict and asked the Sahara group entities to refund the money raised through OFCDs to investors within six weeks.
Transport experts handed over the memorandum to the BEST to start an air-conditioned public bus service for the Mumbai airport, who has called a meeting on 24th October with its transport department
Moneylife had campaigned to start a dedicated public bus transport with adequate luggage space to the Mumbai Airport. Moneylife Foundation, a not-for-profit organisation, drafted a memorandum with the help of experts on transportation, who unanimously supported the idea of starting an air-conditioned public bus service on priority basis.
Today, the memorandum was submitted to Sunil Shinde, chairman of BEST (Brihanmumbai Electric Supply & Transport) and to the office of BEST’s general manager OP Gupta. The meeting was attended by transport experts Sudhir Badami and Ashok Datar, who played a key role in drafting the memorandum. The same memorandum has also been sent to the chief minister of Maharashtra, Prithviraj Chavan.
“We had a detailed deliberation and brain storming session on the viability of starting such project. Mr Shinde took keen interest in understanding the memorandum,” says Mr Badami.
The BEST chairman has also called a meeting on 24th October with its transport department to the work on the fine details of starting such dedicated service. Another presentation will be given to BEST on that day.
Mumbai is the only major city in the world and within India that does have such service even as Bengaluru, Hyderabad and Kolkata successfully run such service. Experts say that starting such service is a ‘doable’ project. This is mainly because the project would be of small size and the target audience is clearly identified.
Considering the issue of traffic congestion and frequent strikes by auto rickshaw drivers, such a service would be efficient from the usability point of view.
IndusInd Bank had recorded a net profit of Rs133.15 crore in the corresponding quarter last fiscal
Private sector lender IndusInd Bank today posted 45.1% increase in net profit at Rs193.09 crore for this fiscal's second quarter ended 30 September 2011.
The bank had recorded a net profit of Rs133.15 crore in the corresponding quarter last fiscal, IndusInd Bank said in a filing to the Bombay Stock Exchange.
The total income of the lender also increased to Rs1,563.07 crore during the quarter from Rs1,029.20 crore over the corresponding period last year.
During the first half of 2011-12, the bank clocked 48 per cent rise in net profit to Rs373.27 crore, compared to Rs251.70 crore in the same period a year ago.
The bank reported a total income of Rs2,943.05 crore in the first six months, compared to Rs1,961.69 crore in the previous financial year.
The shares of IndusInd Bank were down 0.24% at Rs269.25, from the previous close on the BSE, which has been in the red throughout the day.