SC to hear Sahara plea against SEBI order tomorrow

New Delhi: The Supreme Court will tomorrow hear the Sahara group firm’s plea against the SEBI order to return the money, along with 15 per cent interest, collected from investors through its Optionally Fully Convertible Debentures (OFCD) scheme. OFCDs are bonds which can be converted into equity at the investor’s option.

Following the orders of the Supreme Court, the Security and Exchange Board of India (SEBI) had on June 23 directed the two Sahara group firms - Sahara India Real Estate Corporation and Sahara Housing Investment Corporation - to refund the money , along with 15 per cent interest, raised through OFCD scheme for violating regulatory norms. Till the money is returned, the regulator has banned promoter Subrata Roy and some Sahara directors - Vandana Bhargava, Ravi Shankar Dubey and Ashok Roy Choudhary - from accessing the capital market or being associated with any listed public company.

[caption id=“attachment_38199” align=“alignleft” width=“380” caption=“Chairman of Sahara India Subrata Roy. AFP”] [/caption]

However, on 12 May, the apex court had said that the Sebi directive would not take effect till its further order.

The plea would be heard by a three-member bench headed by Chief Justice S H Kapadia. Earlier on 27 June, a vacation bench of the apex court, comprising Justices P Sathasivam and K Patnaik, had declined to hear the plea of Sahara India Real Estate Corp and asked to list it before the Chief Justice, who has been hearing the case.

As per Sebi order promoter Subrata Roy and directors Vandana Bhargava, Ravi Shankar Dubey and Ashok Roy Choudhary jointly and severally, shall refund the money.

During the last hearing on May 12, the apex court had asked Sebi to proceed with its probe into Sahara group’s OFCD scheme by observing that investors may not have any knowledge about these products and might feel cheated like in the

Harshad Mehta scam. The court had also allowed the Allahabad High Court to

proceed with its hearing, where the Sahara group has challenged SEBI’s direction to give details of its investors.

PTI