In a series of directions on August 31, 2012, the top court had directed that Sahara Group firms – Sahara India Real Estate Corporation Ltd (SIRECL) and Sahara Housing Investment Corporation Ltd (SHICL) – would refund the amount collected from individual investors or group of investors, with interest of 15 per cent per annum to SEBI from the date of receipt of the subscription amount till the date of repayment within three months.
A bench of Justices Sanjiv Khanna, M M Sundresh and Bela M Trivedi said the court has to find some practical solution for refunding the investors’ money as the issue is pending for over a decade.
“Sahara Group has said that it will submit some scheme for depositing around Rs 10,000 crore. This matter cannot go on and on. It has been more than 10 years since the court directed for a deposit of Rs 25,000 crore. We have to find some practical solution to make a headway as the company has only deposited around Rs 15,000 crore till now,” the bench said.
Justice Khanna pointed out that senior advocate Kapil Sibal, appearing for the Sahara Group told on Tuesday that the company will submit a roadmap for depositing the balance amount.
Senior advocate Arvind Datar, appearing for SEBI, said after the demise of Subrata Roy in 2023, no one knows who heads the company and how it is going to deposit the money in compliance with the court’s order. “We want to know about the current organisational structure including names of directors and the shareholders,” the bench said, adding that on Thursday it will first deal with the question of sale of properties and then it would deal with the question of refund of money to the investors. “We will peruse the roadmap to be submitted by Mr Sibal and also the previous roadmaps, which have been given in this court. We want a list of all the encumbered and unencumbered properties of the Group except for Aamby Valley, so that necessary directions can be passed on them,” the bench said.
The bench asked senior advocate Shekhar Naphade, who has been appointed as amicus curiae in the matter to start his submission on Thursday.
On Tuesday, the top court said there is no embargo on Sahara Group to sell its properties for depositing around Rs 10,000 crore in SEBI-Sahara refund account for returning investors’ money.
While expressing displeasure over the Sahara Group not depositing the full payment as directed by the court, the bench had said, “There is no embargo on Sahara Group in selling its properties for depositing the remaining Rs 10,000 crore out of Rs 25,000 crore ordered by the court. Only thing was that it should not be sold below the circle rate and if it is to be sold below the circle rate, then prior permission of the court is to be sought.”
In November 2023, Sahara Group chief Subrata Roy, who was earlier ordered to be taken into custody by the court in the matter, passed away at a private hospital in Mumbai.
Earlier, SEBI told the court that in terms of the 2012 order of the top court, Sahara firms have till date deposited Rs 15,455.70 crore which has been invested in fixed deposits of various nationalised banks and as on September 30, 2020, the total amount along with interest earned in SEBI-Sahara refund account is Rs 22,589.01 crore.
It had said the contemnors Sahara Group chief and his firms SIRECL and SHICL are in “gross violation” of various orders passed by the court regarding the deposit of “entire monies” collected along with the interest.
A contemnor is a person or entity which has been held to be in contempt of court.
The market regulator said out of the total outstanding principal liability of Rs 25,781.32 crore, SEBI has realised only Rs 15,455.70 crore from the Saharas and from sale of properties of the group.
“The balance amount of Rs 10,325.62 crore (principal amount) is still to be paid by Sahara Group. It is submitted that as on September 30, 2020, total net liability of Saharas was Rs 62,602.90 crore taking into consideration interest at Rs 15 per cent in terms of directions of this court dated August 31, 2012,” SEBI had said in its 2020 application filed in the matter.
