SC allows Sahara to arrange bank guarantee to comply with court order

The court accepted Sahara's proposition, given by Sibal, that the bank guarantee shall only be encashed by the market regulator upon the directions of the court


The Supreme Court on Friday allowed Sahara to arrange a bank guarantee of Rs5,000 crore in the favour of the capital market regulator to comply with the conditions for the release of its chief Subrata Roy and two other directors who are in custody in Delhi's Tihar jail since March 4, 2014.
A bench of Justice T.S.Thakur, Justice Anil R. Dave and Justice A.K.Sikri allowed Sahara to go ahead with arranging the guarantee from a scheduled bank, after amicus curiae Shekhar Naphade and senior counsel Arvind Datar appearing for the Securities and Exchange Board of India (SEBI) okayed the format while informing the court that Sahara have not disclosed the bank's name.
The apex court by its March 26, 2014 order had said that Sahara would be paying Rs10,000 crore towards refund of the investors money out of which Rs5,000 crore would be in cash and Rs5,000 crore in bank guarantee. The court had said this this too would be condition for the release of Roy and two other directors - Ashok Roy Choudhary and Ravi Shankar Dube - from judicial custody. 
On Friday, the court did not accept the SEBI's submission that the encashment of the bank guarantee, which Sahara would be furnishing, would be subject to the time frame in which it would be making full payment of the balance amount of the investors money as ordered by the court August 31, 2012.
The court also did not accept SEBI's submission that the acceptance of Rs10,000 crore - Rs5,000 crore cash and Rs5,000 crore bank guarantee - was subject Sahara indicating the time line in which they would refund the balance amount.
Senior counsel Kapil Sibal, appearing for Roy, contested SEBI's position saying what was being said by the market regulator was not flowing from March 26, 2014 apex court order.
The court accepted Sahara's proposition, given by Sibal, that the bank guarantee shall only be encashed by the market regulator upon the directions of the court. 
The apex court by its August 31, 2012 order had asked Sahara group'ss two companies - Sahara India Real Estate Corp Ltd. (SIRECL) and Sahara Housing Investment Corporation Limited (SHICL) - to return investors Rs24,600 crore along with 15% interest.
Two Sahara companies had moped up this money from investors through optionally fully convertible debentures (OFCSs) in 2007 and 2008.
The court fixed May 14 as the next date of hearing as Sibal said that they would tell the court about the steps taken by the Sahara to comply with the court's March 26, 2014, directions.
On the next hearing, the court will also hear Sahara's plea that it may be allowed to retain with it the excess amount that it would get from the proceeds of its transactions to raised Rs10,000 crore for the payment of the statutory dues and employees' salaries and depositing of their provident fund dues.
As SEBI counsel Arvind Datar red-flagged the plea, the court told him that all the assets of Sahara are under freeze and they have to discharge their statutory obligations.
Telling Datar that discharge of statutory obligations take precedence over their liabilities, the court said that it would consider the plea on the next hearing.



Vaibhav Dhoka

1 year ago

Such cases take high time and ordinary public is denied justice when prime time is taken by these cases.One thing is clear from this and Salman Khan Hit and Run case that that judiciary does not follow equality that is guaranteed by constitution.One requires money and contacts while stepping Justice system.The question in everybody mind today is: Do all gets such electrifying hearing in appeal as in Salman case?Or one has to wait for generations to get JUSTICE.The lawyers fees as informed throe' social media will make many litigants to suicide,if he is entangled in legal battle in his lifetime.

Stage set up for Modi event collapses in Raipur, 55 injured

The injured included 44 policemen


A large stage erected for Prime Minister Narendra Modi's public event in Naya Raipur collapsed in a sudden storm on Friday afternoon, injuring 55 people, officials said.
The injured included 44 policemen.
As a result of the accident, the event of Modi on Saturday has been cancelled, announced Chief Minister Raman Singh, who toured the spot afterwards. However, the prime minister's programme in Dantewada will go on as scheduled.


Nifty, Sensex to rise further – Weekly closing report

Nifty may close the week positively, recovering some of its recent losses


We had mentioned yesterday that the market might rally on Friday. Thanks to short-covering and overall better sentiment, the Sensex was up by 506 points and Nifty by 134 points, ending the week in positive. The S&P BSE Sensex closed the week that ended on 8th May at 27,105, up 94 points or 0.35%, while the NSE’s CNX Nifty closed at 8,19, 2up 10 points or 0.12%. 
In the previous week, we had mentioned that the Nifty is under pressure and it may rally only if it closes above 8,300. On Monday the Nifty witnessed a gradual uptrend and closed near the day’s high. Nifty closed at 8,332 (up 150 points or 1.84%). HSBC India Purchasing Managers' Index (PMI) declined to 51.3 in April from 52.1 in March. Manufacturing output, total new orders and buying levels expanded at slower rates in April 2015.
On Tuesday Nifty closed at 8,325 (down 7 points or 0.09%). The weakness on the index set in again but it managed staying above the Monday’s low. Positive comments of the finance minister too did not help boost market sentiments. The Real Estate (Amendment) Bill was listed for consideration and passing in Rajya Sabha on Tuesday but opposition members objected to this, saying Housing and Poverty Alleviation Minister Venkaiah Naidu had assured the House that it will be brought only after consultations with various parties.
Negative closing of the US indices on Tuesday and weakness on the Asian bourses played negatively back home as well. The indices plunged deeply into the red, recording one of its biggest losses this year. Nifty closed at 8,097 (down 228 points or 2.74%) and Sensex closed at 26,717 (down 723 points or 2.63%). The seasonally adjusted HSBC India Services Business Activity Index declined to a three-month low of 52.4 in April from 53 in March. The Lok Sabha passed Goods and Services Tax (GST) bill despite a walkout by the Congress party. The bill is likely to get support from most opposition parties in Rajya Sabha. 
US trade-deficit report indicated that the nation's trade gap hit its highest level in seven years. The widening trade deficit suggests that the US gross domestic product reading will go from a meagre 0.2% to negative territory when figures are revised later this month.
On Thursday the loss on the bourse continued. Nifty closed at 8,057 (40 points or 0.49%) after hitting its lowest since 17 December 2014. IMF said that although India's near-term growth outlook has improved, its medium-term prospects remain constrained by long standing structural weakness, describing the country as a new bright spot in Asia.
The markets opened with a big gap on Friday and remained strong for the entire session. Nifty closed at 8,192 (up 134 points or 1.67%). Finance Minister Arun Jaitley announced the setting up of a committee to suggest ways to resolve the minimum alternative tax (MAT) dispute with foreign investors as well as some other tax issues. The committee is requested to give its recommendations on the specific issue of MAT on foreign portfolio investors (FPIs) expeditiously, Jaitley said.
Out of the 27 main sectors tracked by Moneylife, top five and the bottom five sectors for this week were:


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