SAT asks Sahara Group firm, former directors to deposit ₹2,000 cr with SEBI

Market regulator SEBI will keep the fund in an escrow account. SAT said in an order that the attachment order against the company and its directors will be withdrawn after depositing the amount.

“We direct Appellant No. 1 Sahara India Commercial Corporation Limited and Appellant No. 2 Sahara India … to provide complete list and particulars of all bank accounts, demat accounts and all properties and properties in India and abroad within four weeks. Holdings of mutual funds/shares/securities (in physical or demat form) within SEBI,” the SAT said.

It further said that such details would be provided in an affidavit to be administered by Subrata Roy to the oath.

Keeping in view the old age and medical needs of the then directors of the company AS Rao and Ranoj Das Gupta, the tribunal directed to withdraw the attachment order issued against them.

The present appeal has been filed against a SEBI order passed in October 2018, asking for the winding up of Sahara India Commercial Corporation Limited (SICCL) and its erstwhile directors. The company raised Rs 14,000 crore by issuing Optionally Fully Convertible Debentures (OFCD) with 15 per cent annual interest.

The funds were raised without following regulatory norms.

The order 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, the recovery officer of SEBI issued a notice of demand directing the appellants (the company and its then directors) to deposit an amount. 14,106 crore will not be recovered within 15 days.

As no amount was paid, the recovery officer issued an attachment order in October 2021 directing the banks to attach the appellants’ bank accounts and demat accounts. PTI SP ABM ABM