Companies & Sectors
SC raps Sahara Group for not refunding investors’ money

The Supreme Court, however, granted a day’s time to the two Sahara group companies to inform it if they would be able to refund the money or not


The Supreme Court on Monday rapped Sahara Group for not refunding Rs27,000 crore to investors, who had put their money into its two companies, reports PTI.

 

A bench headed by Chief Justice Altamas Kabir asked Sahara India Real Estate Corporation (SIRECL) and Sahara Housing Investment Corporation (SHICL) to tell tomorrow whether they would be able to refund the entire amount to their investors within a week.

 

Justice Kabir, who is known for his cool demeanour, had some harsh words for the companies for not implementing the apex court's order and said the firms' plea does not merit any hearing.

 

"Your intention is very shaky. Your every step is shaky, we can't interpret our order according to your need," the bench said.

 

Senior advocate Gopal Subramaniam, appearing for one of the companies, tried to justify its failure to refund the entire amount, but the bench strongly rebutted him saying, "You are justifying your conduct, which is not justifiable".

 

The bench, however, granted a day's time to the two Sahara group companies to inform it if they would be able to refund the money or not.

 

Market regulator Securities and Exchange Board of India (SEBI) also opposed Sahara's petition and submitted that it has already filed a contempt petition against them and said that a strong action should be taken against them.

 

The bench, however, said it is more concerned about the common man, who has invested his money in the companies.

 

"If you want me to send them to jail, we would send them, but we are more concerned about the investment made by the common man," the bench observed.

 

During the argument, justice Kabir lost his cool when senior advocate Mukul Rohatgi, appearing for another Sahara group company, stood up to argue the case.

 

"This is not the way. Even when your side is losing, you do not have the right to jump in," justice Kabir said asking Mr Rohatgi to sit down.

 

Last Friday, Sahara group moved the apex court against the order of the Securities Appellate Tribunal (SAT) that dismissed its appeal against SEBI.

 

The counsel for Sahara told the bench headed by Chief Justice Kabir that the company was ready with a draft of Rs5,100 crore for deposit in the apex court's registry.

 

In their appeal before the SAT, two Sahara Group companies had sought the Tribunal's intervention in refund of investors' money and had accused the market regulator SEBI of wrongly charging them of non-compliance with a Supreme Court order in that regard.

 

The Tribunal, however, had said that any further direction in the case could be sought and granted by the Supreme Court alone and dismissed the appeal.

 

 

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COMMENTS

Vaibhav Dhoka

4 years ago

One wonders whether SAHARA investors will get back their deposit.The big adds are at cost of investor.If Subrato Roy is clean he should have returned money immediately after Supreme court rap.They are enjoying publicity at cost of small investors.

A BANERJEE

4 years ago

The whole country must be indebted to the Supreme Court for taking up cudgels with this group which, in my opinion, has committed a grave contempt of the Court by insertinf double-page ad in all national newspaper purporting to be a parawise reply to the charges by the Supreme Court itself upholding SEBI's and SAR's orders. In fact, this has been the established practice of this group for long vis-a-vis the income tax department's action seeking to call for information or recovering taxes. The truly dedicated officers handling these cases were exasperated as their superiors always were cowed down by the offensive press ads against their honest subordinates'action. It is hoped that the Income Tax Department's bosses sitting in the North Block will now gather courage in their hands and pursue investigations and recovery in right earnest.

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