Sahara Moved to SAT to Seek More Time for Document Submission

Sahara Group on 19 November 2012 moved to Securities Appellate Tribunal (SAT) against SEBI asking for some more time for submission of the documents in context with around 3 crore investors in a case which involves two companies- Sahara Housing Investment Corporation (SHICL) and Sahara India Real Estate Corporation (SIRECL).

These two companies were ordered by the Supreme Court to refund the bondholders 24000 crore Rupees with the interest of 15 percent p.a. for not following the norms in raising fund from the public. The two companies have asked SAT to direct SEBI for allowing them time till 31 January 2013. The initial 10-days deadline which was set by Supreme Court in the order given on 31 August 2012 has expired already. The court asked the two companies for submission of details in context with the concerned investors.

In October 2012, SEBI said that these two companies had failed to submit relevant documents. SEBI had also given advice to the investors against squashing to the pressure from Sahara Group or the agents for swapping over the investments in SIRECL and SHICL to the other companies of the group. In the meanwhile, SEBI decided to ask for the help from public sector banks as well as KYC Registration Agencies (KRAs) in order to perform personal verification regarding 3 crore investors associated with the case.  

SEBI has already started the process of appointing autonomous investigating agencies in order to help it in the case which involves two companies of the Sahara Group.