Sahara

About 3 years back SC sent Subroto Roy and other two directors of Sahara group to prison in a case filed by Security and Exchange Board of India(SEBI), which was relating to collection of funds by Sahara group under scheme which were not approved by SEBI. The total amount was of the tune of about Rs 22,000 Cr which was collected by Sahara group and SEBI insisted that the fund collected by them should be returned to the investors. The matter , which was initially between Sahara and SEBI, finally landed in SC, as Sahara kept on saying that they have returned the money to investors and what ever evidence they submitted to SEBI were rejected by SEBI without even inspecting them. SEBI’s contention was all these evidence are bogus and hence they are not interested in seeing them. Finally matter went to SC, and because of failure of depositing money which was to be returned to investors, Subroto Roy and other two directors were sent to jail.

My few observations on this case:

1.Agreed that Sahara group took the money from small investors under the schemes which were not approved by SEBI.

2. After they were lodged in Jail, the bail application was filed. The SC set a bail amount set was- Rs 5000 Cr to be deposited with SEBI and additionally Bank Guarantee of Rs 5000 Cr.

3. Sahara group mean time asked for some time to arrange funds and told SC that they will be able to pay SEBI after the sale of some of their properties, for that to happen they requested SC to release their Chairman Subroto Roy  so the sale of properties can be negotiated, as no buyer will come to jail for negotiation.  SC refused their request but in the end SC instructed Tihar jail officials to set up video linking facilities in a particular room where Subroto Roy can hold video conferences with prospective buyers.. This move also did not proved successful for Sahara as nothing came out from video conferencing.

4. Finally after 2 years they got  bail in March 2017, when mother of Subroto Roy expired, with the condition that they have to deposit certain amount money by date set by SC.

5. Sahara group up till now has deposited Rs 13,316 Cr with SEBI and still has to deposit Rs  9000 Cr.

6.Sahara group is still short of depositing Rs 500 Cr, the amount which was to be deposited by 15th July 2017.

7.Yesterday Sahara’s advocate requested to extend the time till 15th Aug 2017 for depositing this Rs 500 Cr, and present the blue print about how they will return the balance amount.

8.One more point was raised by Sahara’s advocate that up till now Sahara group has deposited approx Rs 13,316 Cr, but SEBI has not given any account of money refunded to the investors. Their further contention was if SEBI checks the documents submitted by us, then they will find that money has been returned to investors.

We all know Sahara group was dragging their feet for paying the amount demanded by SEBI over the years. But if I was not mistaken this case was made out in a big way by SEBI that Sahara group is not refunding the money to investors, and to safe guard the interests of investors SEBI went to SC to recover investors money from Sahara. My contention is that why  SC is only admonishing Sahara group regarding late payments, but why they are not asking SEBI about how much amount they have refunded to investors,and what about SEBI earning interest on the deposit of Rs 13,316 Cr. After all this case was meant for safe guarding the interest of investors. Looks like INVESTORS ARE FORGOTTEN NOW.

What you say my friends.

Awaiting for your feed backs and comments.