SAT defers hearing on Sahara chief's appeal

Sebi had ordered the attachment of Roy's properties in addition to that of three other individuals

The Securities Appellate Tribunal (SAT) on Thursday deferred a hearing on an appeal by Subrata Roy Sahara, chief of the Sahara group of companies, to March 11, against an order by the Securities and Exchange Board of India (Sebi) to attach his personal properties.

Tribunal member Jog Singh deferred it due to the absence of a presiding officer.

P K Malhotra, SAT’s officiating presiding officer, was appointed secretary in the legislative department of the ministry of law in early December. The next hearing will take place in Delhi.

Sebi had ordered the attachment of Roy’s properties in addition to those of three other individuals in this case — Vandana Bhargava, Ravi Shankar Dubey and Ashok Roy Choudhary — in an order dated February 13. Two Sahara group companies, Sahara India Real Estate Corporation and Sahara Housing Investment Corporation, had garnered investments of Rs 24,000 crore from investors through an issue of debentures. Sebi and the Supreme Court had noted irregularities in the fund raising. The apex court asked the company to deposit the money with Sebi for a full refund to investors.

The group subsequently gave the regulator Rs 5,120 crore and stated that the remaining Rs 19,400 crore had been already returned to investors.

Sebi’s February 13 order said Sahara had given no convincing documentation of such a refund. It ordered attachment of the properties of these companies and of the four individuals mentioned.