The Supreme Court of India on 6 February 2013 gave its ruling against Sahara Group setting the Securities and Exchange Board of India (SEBI) free for seizing the properties and freezing the accounts of the two companies of Sahara Group for disobeying the Apex Courts orders of refunding 24000 crore rupees of investors. The Supreme Court also issued a notice against Sahara Group seeking response within four weeks that why the contempt proceedings should not be initiated against the group.
The Supreme Court bench of two Judges, Justice K.S. Radhakrishnan and J.S. Khehar also pulled up SEBI for not taking action against the Sahara group companies namely Sahara India Real Estate Corporation (SIREC) and Sahara Housing Investment Corporation (SHIC) after it defied the Court orders as per the 31 August 2012 orders.
The Supreme Court bench also cleared that SEBI was free to take its actions against Sahara Group companies and the contempt plea would not come on the way of proceedings initiated by it.
What is the issue?
Supreme Court on 31 August 2012 ordered the two companies Sahara India Real Estate Corporation (SIREC) and Sahara Housing Investment Corporation (SHIC) to refund the amount of around 24000 crore rupees to the investors with 15 percent interest per annum within three months as the two companies raised the amount from the investors after violating the rules and regulations.
Region for the Supreme Court’s Decision
The two companies of the Sahara namely the Sahara India Real Estate Corporation (SIREC) and the Sahara Housing Investment Corporation (SHIC) defied the orders of the Court and failed to pay back the amount of 24000 crore rupees to the investors.
Series of Developments on the issue:
• 31 August 2012 – Supreme Court ordered two Sahara Companies to refund 24000 crore rupees to investors.
• December 2012 – Sahara group rapped by Supreme Court for not refunding the amount to investors and gave a week’s deadline
• 5 December 2012 – Sahara group got two months time to pay the amount to investors in three different installments
• January 2013 – SEBI informed that all paper in case of Sahara was not received by them
• 6 February 2013 – Supreme Court passed its ruling and set SEBI free to freeze the accounts and seize the properties of the two companies of Sahara.