Securities & Exchange Board of India, SEBI the market regulator, asked the Supreme Court of permission to arrest Subrata Roy, the chief of Sahara Group of companies.
SEBI has decided to go harsh against the Sahara Group of companies. This was all the more clear with their appeal to the Apex court for permission to arrest the Sahara Chief. SEBI has demanded the arrest of Subrata Roy Sahara.
Along with the Sahara Chief, other two directors like Ravi Shankar Dubey and Ashok Roy Choudhary also are likely to be arrested soon, if the Supreme Court permits the market regulator; for their failure to comply with the SC order, given on August 31 last year.
As per the August 31 order, two Sahara Group firms– Sahara Housing Investment Corp and Sahara India Real Estate Corp were ordered to pay a fine of over Rs.24000 Cr to the investors. The fund was raised through OFCDs.
However, the apex court; finding some illegality in the list of investors, asked these firms to pay off the fund with the market regulator. The order further had empowered SEBI to seize the properties of the firms, in case of failure from their part to pay the amount in time.
In its petition filed to the Supreme Court, SEBI requested the SC to take necessary measures permitting the market regulator to arrest the directors and the chief promoter of Sahara Group.
Justice K.S. Radhakrishnan -headed SC bench said that it will consider the application of SEBI, however probably once the Holi Festival gets over.
Blaming the Sahara firms for not complying with the order of SC, SEBI stated that it is ‘just’ thing to be done. It added that promoter and the directors of the firms really deserve this.
Though the court had permitted them to pay the amount in installments, the firms did not comply with the order. Nor they paid the installments.
On the other side both the firms claimed that they have paid the amount with the SEBI. As per their claims their remaining amount to be paid is a mere Rs.2620 Cr and nothing more than this.