Sahara to move Supreme Court for giving documents to bank, not SEBI
The Sahara Group, which is engaged in a bitter legal battle with market regulator SEBI, Friday said it will approach the Supreme Court seeking an order to submit title deeds directly to a nationalized bank instead of SEBI.
"We will approach the court asking for an order that we be allowed to submit all the relevant documents to a nationalized bank who will give us the security. Ultimately only a nationalized bank will give us a security which the court wants from us," group Chairman Subrata Roy told media persons here.
The apex court has directed the Sahara group's real estate and finance arm - Sahara India Real Estate Corporation Ltd. and Sahara Housing Investment Corporation Ltd. - to deposit unencumbered title deeds of their assets of Rs.20,000 crore as a guarantee to return investors' Rs.24,000 crore, collected thorough Optionally Fully Convertible Debentures.
SEBI moved the apex court for the failure of Sahara group's two companies to comply with the apex court's Aug 31, 2012 order directing its companies to return the investors' Rs.24,0000 crore with 15 percent interest.
The market regulator later moved a second contempt petition for Sahara's failure to comply with the apex court's Nov 5, 2012 order asking SEBI to accept Sahara's pay order of Rs.5,120 crore as a part payment of the investors' money.
Roy also rubbished SEBI's view that the properties offered earlier as security for Rs.20,000 crore were overvalued and accused the regulator of being "vindictive".
He also alleged that SEBI was employing delaying tactics so that it can enjoy Rs.5,120 crore which the Group so far has deposited to SEBI for repaying the investors.
"Most of our investors are from rural background who don't possess documents like a PAN card etc while the SEB is asking for seven to eight documents from them. While we are in a hurry and pressure to pay the investors, the SEBI through its delaying tactics is enjoying the money we have paid," said Roy.
Roy also attributed his group's continuous run-ins with the SEBI and the RBI, to an emotional comment he made about the chairperson of a national political party.
"Sahara has been a continuous target of the RBI and the SEBI and a political reason for that is an emotional comment I made long back. Earlier I had said that only an Indian born person should be the prime minister of the country and not a foreigner," said Roy.
Roy also said the because of the "vindictive attitude" of the market regulators, many investors and corporates feel discouraged to invest in the country and look out for greener pastures outside India.
(Posted on 29-11-2013)