SC orders Sahara to repay
Rs. 24,000cr to its investors

NEW DELHI: In a huge setback to the Sahara group, the Supreme Court on Friday directed it to return Rs24,000 crore, plus 15% interest, to 30 million investors. And if the group fails to comply with the order, its properties would be attached and bank accounts frozen.
Market regulator SEBI contended that two real estate companies of the group violated the Companies Act by collecting money through optionally fully convertible unsecured debentures (OFCDs).

The two companies — Sahara India Real Estate Corporation Ltd and Sahara Housing Investment Corporation Ltd — issued prospectuses on March 13, 2008 and October 16, 2009. On November 24, 2010, SEBI restrained them from selling the bonds after their “persistent refusal” to provide details of investors.

Although the judgement said as much as Rs40,000 crore had been raised by the two companies, SEBI counsel Pratap Venugopal told HT: “The two companies would have to refund over Rs24,000 crore.”