SAT Orders Directors Of Sahara Group To Deposit Rs 2,000 Crore

SAT orders directors of Sahara Group to deposit Rs 2,000 crore. Securities Appellate Tribunal orders all firms and directors of Sahara Group to deposit Rs 2,000 crore with SEBI.

The Securities Appellate Tribunal (SAT) on Thursday asked Sahara group firm Sahara India Commercial Corporation Ltd and its then directors, including Subrata Roy, to deposit Rs 2,000 crore with Sebi within four weeks.

The funds received will be kept in the market regulator SEBI escrow account.

The SAT issued an order saying that, after depositing this amount, the attachment order against the company and its directors will be withdrawn.

Issuing a statement, SAT said, “We will send within four weeks to appellant No. 1 Sahara India Commercial Corporation Limited and appellant No. 2 Sahara India a complete list of all bank accounts, Demat accounts and all properties and assets in India and abroad.”

Also directed to furnish to SEBI complete particulars relating to mutual funds, shares, and securities. Such particulars shall be provided by Subrata Roy in an affidavit on oath.”

Simultaneously, the tribunal has directed the withdrawal of the attachment orders issued against the then directors of the company AS Rao and Ranoj Das Gupta keeping in view the old age and medical needs.

The present appeal was filed against an order of SEBI passed in the month of October of the year 2018, under which Sahara India Commercial Corporation Limited (SICCL) and its erstwhile directors were to be collected by the company by issuing Optionally Fully Convertible Debentures (OFCDs).

The Rs 14,000 crore lost was asked to be returned with an interest rate of 15 percent per annum.

The order passed barred SICCL as well as its erstwhile directors and affiliated entities from the markets and from associating with any public entity.

The case pertains to collecting money by issuing certain bonds from around 20 million investors between 1998 and 2009.

In April 2021, SEBI’s recovery officer was issued a notice seeking a direction to the appellants (the company and its then directors) to deposit Rs 14,106 crore within 15 days.

Failing which the process of recovery was initiated from the company.

Due to non-repayment of the amount on the part of the company, an attachment order was issued in October 2021 in which the banks were directed to attach the bank accounts of the appellants.