Subrata Roy terms Sebi action as act of personal vengeance

Even though the Economic Offence Wing of Mumbai Police has initiated a preliminary inquiry against Shara Group following allegations that investors are being intimidated by the Subrata-led company, Roy today maintained that the complaint is fictitious and that the group has repaid Rs 18,000 crore to investors “three years in advance.”

In an exclusive interview with CNBC-TV18, Roy said that Sahara group has directly paid back most of the investors and the total outstanding liability is less than Rs 5,120 crore which has already been deposited with Sebi as the refund amount.

Sebi has been asked by the Supreme Court to facilitate refund of over Rs 24,000 crore to more than three crore bond holders of Sahara India Real Estate Corp Ltd and Sahara Housing Investment Corp Ltd. However, playing the victim, Roy maintained that the company had repaid its investors even before the Supreme Court order came out. He however, asked market regulator Sebi to verify the ‘30 crore investor’ figure.

Criticising Sebi, Roy claimed that Sebi was making up stories without checking facts and termed the market regulator’s action as an act of personal vengeance.

“Many govt agencies have been targeting us.. Will reveal at right time there is vengeance against us, " he said, adding that political motives are behind the chain reaction of RBI and Sebi.

He even went on to say that Sebi had gone beyond Supreme Court’s order and was breaking all rules and law.

“SC never told Sebi to break all rules and laws. All conclusions are derived without any verification,” he added.

He even accused Sebi of delaying the refund and said that the regulator was not doing anything to pay back the investors.

As per the Supreme Court order, Sahara has to bear all the expenses incurred by Sebi in connection with the refund process. Sebi has already incurred expenses to the tune of Rs 55 crore in this case and the final bill is expected to be much higher.

Roy also said his assets included gold ornaments and gemstones worth about Rs 3 crore , fixed deposits of Rs 1.59 crore and cash and bank deposits of Rs 34 lakh. He said he had no “immovable property,” or real estate.

He further clarified that he has not yet heard anything from the Mumbai police and accused the RBI and Sebi of conspiring against Sahara.

Refusing to divulge any details about the company’s real estate and hotel businesses, Roy said his empire would grow at a faster pace now.

“My business will grow and grow and a faster pace because you cannot prove the right wrong. Media should dig the truth as big brother… Fifty lakh bellies are dependent on Sahara and we seek justice,” said Roy.

The market regulator had today called upon Roy and three other directors of Sahara Group to discuss the sale of the group’s properties and recovery of unpaid dues.

The Securities Appellate Tribunal (SAT) is scheduled to hear on April 13 the appeals filed by Subrata Roy and others against a previous Sebi order for attachment of their bank accounts, assets and investments.