The Sahara group came under flak from the Supreme Court that pulled up the company for “manipulating courts” and not complying with its order to refund Rs 24,000 crore to its investors.
An apex court bench strongly disapproved of the company’s move to pursue multiple litigations before various forums. The court felt it was being done to indirectly seek relief from the SC judgment. It criticised the group for approaching the Allahabad High Court against SEBI’s order to attach the company’s properties. The market regulator’s attachment order was in accordance with the SC verdict that allowed SEBI to initiate proceedings against Sahara if it failed to pay.
“You are manipulating courts. What is going on?” the bench said when Sahara’s counsel sought to give an explanation for moving the Allahabad HC. He said SEBI had attached Roy’s personal property despite him not being a party to the case where SC had ordered refund of R24,000 crore. SEBI vehemently opposed it and accused Sahara of furnishing vague details of the investors who have apparently deposited the money.
The court further slammed the company and its chief Subrato Roy for not responding to SEBI’s contempt plea. Issuing notice on the regulator’s plea to detain Roy, the bench gave one week’s time to file a response. During the hearing the bench told Roy’s counsel to make a statement that he would not leave the country but later did not pass the order.
Two companies owned by Sahara group reportedly refused to refund R24,000 crores to over three crore investors.