Supreme Court threatens further crack down against Subrata Roy's Sahara Group

Jan 09 2014, 19:37 IST
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Supreme Court warns Sahara Group: Don't think that court is helpless. (Reuters) Supreme Court warns Sahara Group: Don't think that court is helpless. (Reuters)
SummarySupreme Court said order barring Sahara chief Subrata Roy from leaving country to continue.

value were shown to have been appreciated by 8,500 percent during the last ten years.

Senior counsel C A Sunderam, Roy's counsel, then submitted "I cannot do anything more than this and I cannot offer more than this".

The bench then got agitated over this and rapped the group and Roy for their behaviour.

It directed the company to disclose all the information sought by SEBI including the source of money by January 23 and posted the case for hearing on January 28.

In his application, Roy urged the apex court to consider his plea sympathetically and allow him to visit UK and USA.

Three contempt petitions filed by SEBI against Roy, the two firms--Sahara India Real Estate Corp Ltd (SIREC) and Sahara India Housing Investment Corp Ltd (SHIC)--and their directors are pending before the court.

It had on August 31 last year directed the Sahara group to refund Rs.24,000 crore by November end. The deadline was further extended and the companies were directed to deposit Rs 5,120 crore immediately and Rs 10,000 crore in first week of January and the remaining amount in first week of February.

The group, which had handed over the draft of Rs 5,120 crore on December 5, has failed to pay the rest of the amount.

The two companies, their promoter Roy and directors Vandana Bhargava, Ravi Shankar Dubey and Ashok Roy Choudhary were told to refund the collected money to the regulator.

Earlier, the Group agreed to hand over documents of its 71 properties which it claimed to be worth Rs 20,000 crore as security with the SEBI for refunding investors money.

The court had granted time to SEBI to verify the genuineness of the property deeds submitted by the company and posted the case for the next hearing on January 9.

Sahara said the properties submitted are spread across cities such as Mumbai, Cochin, Noida, Ajmer, Aligarh, Haridwar, Muzaffarnagar, Raipur, Amritsar, Jhansi, Kanpur and Faridabad.

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