The Supreme Court on Monday asked Subrata Roy Sahara and two Sahara firms to reply to the contempt petition filed by SEBI.
The contempt petition states that these two group firms of Sahara and its chief have violated each and every line of the August 31 verdict of Supreme Court, which had ordered them to repay over Rs.24000 Cr to its investors.
Last year August 31 SC had ordered them to repay the investors the amount as the apex court found irregularity in the OFCD scheme through which these firms raised the fund.
During the period between 2008 and 2011, two Sahara firms had raised the funds through OFCD investments from around three crore investors. Sahara Housing Investment Corporation (SHICL) and Sahara India Real Estate Corporation (SIRECL) were those two firms.
Meanwhile SEBI’s demand to surrender the passport of Sahara chief was strongly refuted by C.A. Sundaram, his counsel.
The complaint of the market regulator was heard by Justices K S Radhakrishnan and J S Khehar. Adv. Arvind Datar appeared for the market regulator.
In February SEBI had ordered attachment of all Sahara properties which were bought with the fund raised from three crore investors.
SEBI complained that these companies have not been cooperating with them. It added that these firms on the other hand were trying to mislead the market regulator.
Questioning the attachment order of SEBI, Sahara firms stated that they have already repaid their investors. The firms say that they have already sold the properties.
Though the properties are attached, SEBI could not collect the title deeds of any of the properties. Title deeds are necessary for putting them on auction.
Supreme Court questioned Sahara firms for refunding the investors when they were ordered to do it through the market regulator. Thus it pulled off the firms for manipulating the courts.