SC raps Sahara for defying its order to repay investors

The Supreme Court on Wednesday slammed the Sahara group for not refunding Rs 24,000 crore to the investors who had deposited money with the Sahara India Real Estate Corp Ltd (SIREC) and Sahara India Housing Investment Corp Ltd (SHIC).

The Supreme Court on Wednesday slammed the Sahara group for not refunding Rs 24,000 crore to the investors who had deposited money with the Sahara India Real Estate Corp Ltd (SIREC) and Sahara India Housing Investment Corp Ltd (SHIC).

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A bench of Justice KS Radhakrishnan and Justice JS Khehar also came down heavily on the Securities Appellate Tribunal (SAT) for restraining market regulator SEBI from taking coercive action against Sahara, as ordered by the top court.

Asking the company to deposit Rs 10,000 crore by July 31, the court said in case of a failure, it would order personal appearance of its chief Subrata Roy and two directors.

"Comply with our judgement or we will pass orders. Pay the amount or face personal appearance before the court," the bench told the company's counsel. The SC in its August 31, 2012 verdict, had ordered the reimbursement after it declared that the investment schemes floated by SIREC and SHIC were not in consonance with SEBI regulation.

The money was to be given to the SEBI to be disbursed to around three crore investors.