Sahara Companies Got Two Months Time to Repay Investors’ Money

The Supreme Court of India on 5 December 2012 provided a relief to two Sahara companies when it gave them the time of two months till first week of February 2012. The two Sahara companies- Sahara India Real Estate Corporation (SIRECL) and Sahara Housing Investment Corporation (SHICL) are required to deposit 24000 crore Rupees to the investors. The Apex Court provided breather to the Sahara Companies when it declared that the companies can deposit 24000 crore Rupees, which was collected from the investors, in two installments with SEBI.

The court entertained the appeal against Securities Appellate Tribunal, and the Supreme Court allowed the two Sahara companies to deposit the documents with SEBI in which information about the investors was mentioned. However, the Supreme Court also warned these companies by declaring that in case the leniency of the court was not honoured, SEBI would be completely free to start the proceedings for taking their assets. The court mentioned that deadline was extended keeping in mind the interests of crores of investors.

The two Sahara companies had brought to the court 5120 crore Rupees in the form of bank draft in order to show their authenticity as managers of the money of their investors. It was declared by the advocate of the two companies that they have returned considerable part of the money to their investors and expressed that outstanding amount would be returned as well.