Supreme Court asks Sahara firms, Roy to reply SEBI

Supreme Court has asked two Sahara firms and the group head Subrata Roy to answer the market regulator SEBI in a week.

After hearing the contempt petition submitted by SEBI, Supreme Court has ordered two Sahara firms and the chairperson and managing worker of Sahara Group Subrata Roy to reply the petition of SEBI within a week.

Securities and Exchange Board of India filed the contempt petition when they found that these two firms and Roy had not obeyed any singly line of the August 31 SC Order.

As per the August 31 Order, both the firms were asked to repay over Rs.24000 Cr to its investors. While the firms claim that they have repaid the amount to the investors, the market regulator says that the firms have violated the order.

In the filed petition, SEBI states that none of the firms have followed the order at least by one percent. It states that each and every single line of the order is violated by them.

The order was issued when the Supreme Court found some irregularities in the details of the investors. These firms had raised over Rs.24000 Cr through OFCD investment scheme. Nearly three crore investors had invested in the fund.

Finding irregularities, Supreme Court ordered them to refund the amount with interest. As per the order, these firms had to refund the amount through the market regulator which was also authorized to attach the properties of the firms in case of failure from their side.

Once the market regulator saw that the firms have default payments, it seized their properties. However the market watchdog could not find out the deeds of any of the property.

Sahara Housing Investment Corporation and Sahara India Real Estate Corporation were the two accused Subsidiary firms. The market regulator also demanded Subrata Roy to surrender his passport. This demand was vehemently opposed by his counsel C.A. Sundaram.

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