The Supreme Court has dismissed Subrata Roy-led Sahara group’s plea seeking review of the August 31 order that asked its two firms to refund around R24,000 crore to investors who had invested in its optionally fully convertible debentures (OFCDs).
The Sahara entities — Sahara India Real Estate Corporation (now known as Sahara Commodity Services Corporation) and Sahara Housing Investment Corporation — had raised nearly R17,656 crore as on August 31, 2011 via the OFCD scheme.
A bench comprising justices KS Radhakrishnan and JS Khehar, while dismissing the two review pleas, said: “We have carefully gone through the grounds raised in the review petitions filed by the appellants (two Sahara group entities)...We also do not find any inconsistency in the views expressed by both of us. On the other hand, all the contentions, legally and factually, raised by the appellants were examined, addressed and answered on all possible angles and dimensions... As a sequel to this, applications seeking permission for open court listing, intervention and directions/stay also stand dismissed.”
Market regulator Sebi’s plea seeking initiation of contempt against the Sahara group, Roy and other directors is yet to be heard by the bench.
Sahara group had also sought expunging of its remarks that cast “serious aspersions” upon the firm’s business ethics without any basis.
According to the firms, they had been mobilising investments from the weaker sections of the society for the last 20 years and the investors were well known to the group and there was, till date, not a single case of default in repayment to any of the investors. The Sahara group’s petition said the company had erred in believing that Sebi did not have any jurisdiction, but it was an entirely different thing to suggest that it was a pre-planned attempt.