How did Rs 24,000 cr Sahara dues become Rs 5,120 cr?

The Sahara group, which is supposed to return the money of investors in two optionally fully convertible debentures (OFCDs) by 30 November, has pulled out a skinny rabbit from its kitty as final payment.

The amount of money invested in OFCDs of the Sahara Real Estate Corporation (SIREC) and Sahara Housing Investment Corporation (SHIC) was reportedly in the range of Rs 24,000 crore, but a recent order of the Securities Appellate Tribunal (SAT), mentions that the Sahara Group is planning to repay Rs 5,120 crore.

This figure is mentioned in a SAT order dated 29 November rejecting an appeal by Sahara against Sebi which earlier refused to accept the documents provided on investors saying they came after office hours on 10 September, the last date mentioned by the Supreme Court for the documents.[caption id=“attachment_540363” align=“alignleft” width=“380”] Subrata Roy. AFP[/caption]

In an order dated 31 August the court had ordered the two Sahara companies to return investor funds within three months, with 15 percent interest, to Sebi. That deadline expires tomorrow, 30 November. The money is to be disbursed after due verification of the application documents.

Sahara had approached SAT seeking an order that would force Sebi to both accept its truckloads of documents and the final payment of Rs 5,120 crore. SAT declined to issue any order saying it was premature.

There have been reports in the press, most notably Business Standard, indicating that Sahara was busy pressuring OFCD investors to invest in other group schemes, including by predating the consent letter of investors to dates before the judgment.

It is not known if Sebi will accept Sahara’s truncated cheque since documents with the Supreme Court talked of over three crore investors and outstanding amounts of Rs 24,000 crore.

The big question is: how did Rs 24,000 crore become just Rs 5,120 crore in a matter of months?

We haven’t heard the last on this issue. More court battles lie ahead.