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SEBI order based on old facts: Sahara

Posted on Feb 14, 07:03PM | IBNS

New Delhi, Feb 14 : Leading Indian conglomerate company Sahara Group has said the directives given by the Securities and Exchange Board of India (SEBI) to freeze the bank accounts and assets of two Sahara firms and their top executives, including group chief Subrata Roy, were based on 'old facts'.

"As per Sahara, the total liability is not likely to exceed Rs. 5120 Crores, which amount has already been deposited with SEBI," Sahara said in statement.

"As regards the instalments to be deposited with SEBI as per the order of the Hon'ble Supreme Court, Sahara has filed Interim Application before the Hon'ble Supreme Court interalia praying that Sahara be permitted to furnish security through a credible financial institution instead and in place of the payment of the balance instalments, since Sahara has already redeemed significant number of OFCD Holders and any further payments to SEBI would amount to double payment," the company said.

"The said Interim Application is pending and is likely to come up next week, " it said.

"Further, today's order of SEBI for attachment of the assets is based on old facts and details of assets as of January, 2012. Since, then facts have changed in view of redemptions made by Sahara from time to time," said Sahara.

It said the SEBI knew about the redemption and the order did not take into account the changed facts and circumstances.

"This fact of redemption was known to SEBI. Hence, today's order does not take into account the changed facts and circumstances," Sahara said.

"As per the order of the Hon'ble Supreme Court, the liability to refund the monies is of SIRECL and SHICL. Hence, attachment, of assets of the individuals by SEBI is incorrect. Whereas not only company has paid to SEBI enough amount which is much higher than outstanding liabilities of two companies, the fact also remains in the whole affair Sahara is genuinely concerned for investors," it said.

The move, in two separate orders posted on the SEBI website late Wednesday, came after Sahara failed to heed to a Supreme Court order to repay thousands of crores of rupees to investors of outlawed bonds, the market watchdog said.

Last year on Aug 31 in an order, the apex court had directed Sahara India Real Estate Corporation (SIREC) and Sahara Housing Investment Corporation (SHIC) to refund the money to their investors within three months with 15 per cent interest per annum.

If the unlisted companies failed to refund Rs 24,000 crore with 15 percent interest to about three crore investors, the SEBI can attach properties and freeze bank accounts of the companies, the court had ruled.

In another verdict last December, the Supreme Court had directed Sahara Group to immediately give a demand draft of Rs 5,120 crore to SEBI.

The bench headed by Chief Justice Altamas Kabir had directed it to deposit the first installment of Rs 10,000 crore by first week of January next year and the rest by first week of February.