Wednesday, 5 December 2012
Supreme Court gives Sahara more time to refund investors !!!
In a partial relief to Sahara, the Supreme Court on Wednesday gave the Subrata Roy-led group more time to refund money to its bond investors. SC asked Sahara to deposit Rs 5,120 crore upfront to the Securities & Exchange Board of India (SEBI), and pay the remainder in two instalments in January and February.
Stating that Sahara has to repay Rs 17,400 crore with 15% interest in three instalments. SC told SEBI to take action if the group defaults on repayment.
On Monday, a bench, headed by Chief Justice Altamas Kabir, had made several adverse comments about the "conduct" and "intentions" of the company for failing to meet the November 30, 2012, deadline to pay the amount to Sebi which was to route it to investors. On Tuesday, when the bench reconvened, Sahara counsel Gopal Subramanium sought time till the afternoon to enable him to firm up his statement to court. Since the bench was on
ly sitting in the forenoon on Tuesday, CJI Kabir adjourned the hearing till Wednesday.
Sahara has been claiming to Sebi that all the money has been invested in its Amby Valley projects in 63 cities. It has also been claiming that it has paid off most of its small-time investors and only a balance of Rs 5,000 crore was left to be paid.
Sahara has been denying any wrongdoing and has been insisting that it had offered the money to Sebi and accompanying papers about its investors, but Sebi has been refusing to accept it. It first approached the SAT to direct the market regulator to receive the Rs 5,000 crore and moved the SC after the Tribunal turned it away.
A different bench had in a August 31 order asked two Sahara firms to pay the Rs 17,400 crore with interest to Sebi within three months. Sebi moved a contempt application before that bench when Sahara did not pay up, but the bench refused to act on it and directed Sebi to proceed against Sahara and implement the court order.
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