Regulations
SEBI seeks SC permission to detain Subrata Roy and three directors of Sahara

The market regulator is seeking clarificatory directions for implementing orders of the apex court. In a five point plea, SEBI has also asked for civil detention of Subrata Roy and three other Sahara directors and also wants them to deposit their passports with its whole-time member

Market regulator Securities and Exchange Board of India (SEBI) has moved five pleas before the Supreme Court for directions. 
 

We learn that SEBI's move was triggered by the fact that Sahara has approached the Securities Appellate Tribunal (SAT). Sahara India, a partnership firm of Sahara group, has also filed another case in the Allahabad High Court for de-freezing its accounts. Both these things made it difficult for the regulator to go ahead with implementing the SC order of 31 August 2012 without some clarifying directions from the apex court.

SEBI has made five points in its application…

  1. To publish an advertisement to the depositors of Sahara India Real Estate Corp and Sahara Housing Investment Corp in order to be able to make payments or rather pay out the money deposited with SEBI based on proper identification documents
  2. Procedural direction to appoint lawyers for verification and authentication of Sahara depositors
  3. To appoint officers for bringing various impounded properties of Sahara for sale
  4. Asking Subrata Roy Sahara and Vandana Bhargava, Ashok Roy Choudhary and Ravi Shankar Dubey—all three directors of Sahara group companies—to deposit their passports with SEBI’s whole-time member
  5. Detain Subrata Roy, Bhargava, Choudhary and Dubey in civil prison for not making payments

Last month, close on the heels of ordering attachment of bank accounts, investments and all other assets of Sahara India Real Estate Corp, Sahara Housing Investment Corp and directors and their promoters, including group chief Subrata Roy, the market regulator had cautioned investors and general public against transacting with these companies and persons.
 

SEBI had said that in furtherance to a Supreme Court order directing refund of investors’ money collected by these Sahara firms, it has ordered “attachment of all moveable and immoveable properties, bank accounts and demat accounts of these two companies and that of its promoters and directors namely Subrata Roy Sahara, Vandana Bhargava, Ashok Roy Choudhary and Ravi Shankar Dubey”.

 

On 13th February, SEBI passed two separate orders, together running into 160 pages, directing attachment of properties and freezing of accounts.

 

It was after the Supreme Court said that the regulator was free to freeze the accounts and attach properties if Sahara firms were not complying with the apex court’s earlier orders of August 2012 towards refund of investors’ money totalling over Rs24,000 crore.

 

The assets ordered to be attached included those related to the group’s Aamby Valley resort town near Pune, other real estate assets in Delhi, Mumbai and at other places across the country, shares, mutual funds and various other investments.

 

Passing the attachment orders, SEBI said that the two companies had raised Rs6,380 crore and Rs19,400 crore, respectively from bondholders and ‘various illegalities’ were committed in raising of these funds.

 

With regard to Subrata Roy and three other directors, namely Vandana Bhargava, Ravi Shanker Dubey and Ashok Roy Choudhary, SEBI ordered freezing of all bank and demat accounts of these four persons, as also attachment of all moveable and immoveable properties in their name with immediate effect.

 

Sahara said that it had already deposited Rs5,120 crore with SEBI that was in excess of its total liability towards refund to investors.

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COMMENTS

Boodugere Nagaraj

4 years ago

SEBI's mishandling of cases are taking things from bad to worse. SEBI is compelling NBFCs to close down their establishments permanently, without thinking . about consequences. Because of SEBIs street fight, lakhs of investors have lost their hard earned savings. Ten years back CRB was forced to close and till today investors have not received payment. This was followed by closure of hundreds of other NBFCs, which are rotting in the hands of Liquidators. Many small investors committed suicide. SEBI is not doing anything good or wise. Whatever they are doing SEBI should ensure that genuine investors get back their money without loosing single paise. !

manoharlalsharma

4 years ago

I do not understand why prosecution? of SAHARA supremo. as comman and lay person can dnderstand that no one keep in pocket such a big cash amont,it's all in the books of account and more this is a buisness of borrowing and investing for the benifitt of lenders...it's making lik HOX.

Shashikant Koppikar

4 years ago

It will be great if SEBI anmd the SC between them can expose those who have made benami deposits with Sahara ,. since all indications are that such huge amounts cannot be the earnings of semi-literate small depositors as claimed by the group.

Vaibhav Dhoka

4 years ago

Kudos to SEBI. It has awaken from slumber and taken HE-MAN action against SAHARA.But it should sustain this till it reaches final goal. Definately SEBI's official will also face music if found guilty.

TIHARwale

4 years ago

SEBI - See Everything But Ignore atlast woken up. but law should ensure officials of SEBI are also made accountable as they are no less culpable in the murky dealings of Sahara. Mulayam, Modi etc all are in the pocket of Subroto . Let it be clear no legitimate business will have deposit more than Rs 24,000/- crores and did u not find No politician made any comment on this move of SEBI because black money of all different politicians

nagesh kini

4 years ago

Will SEBI move the SC to arrest every Co.law violation hereafter?

REPLY

sivaraman anant narayan

In Reply to nagesh kini 4 years ago

SEBI seems to be seeking SC cover for its actions lest political backlash singes SEBI officials.

Govt alerts airports to prevent Italian ambassador from leaving India

The decision was taken by the Union home ministry a day after the Supreme Court restrained the Italian ambassador from leaving India without its permission

 
The government has alerted all airports in the country to prevent Italian ambassador Daniele Mancini from leaving the country.
 
The decision was taken by the Union home ministry a day after the Supreme Court restrained the Italian ambassador from leaving India without its permission, official sources said.
 
The apex court had taken exception to Italian government’s refusal to send back two naval guards charged with the killing of two fishermen last February.
 
The two naval guards were allowed by the court to go to Italy to cast their vote in the elections there after the Italian ambassador had given an assurance to send them back.
 
Attorney general (AG) GE Vahanvati had brought up the issue yesterday before the apex court, saying that “it’s a breach of undertaking given to the highest court of the land and the government is extremely concerned about it”.
 
After hearing the AG’s submission, the bench issued notices to the ambassador and the two naval guards and asked them to file their response by 18th March.
 
The two naval guards were on board Italian vessel “Enrica Lexie”, when they shot dead two fishermen off the Kerala coast on 15th February, last year.
 

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