)
K M Abraham, a 1982 Kerala cadre IAS officer investigated Sahara during his tenure as whole-time member at the Securities and Exchange Board of India.
He found irregularities in the way that the group had raised tens of thousands of crore in capital and passed an order in 2011 asking the Sahara group companies to refund investors and holding (among others) Subrata Roy liable for the same.
“The two Companies, Sahara Commodity Services Corporation Limited (earlier known as Sahara India Real Estate Corporation Limited) and Sahara Housing Investment Corporation Limited and its promoter, Mr Subrata Roy Sahara, and the directors of the said companies...shall forthwith refund the money…to the subscribers of such Optionally Fully Convertible Debentures with interest of 15% per annum,” said the order issued over two years ago.
He later wrote to the Prime Minister alleging that the Finance Ministry was pressuring the regulator to go easy on several cases including Sahara. The Finance Ministry denied the allegations. His tenure ended under a cloud.
Recently, the Supreme Court issued a warrant against the Sahara chief following his failure to appear before it in a hearing on the matter. He was arrested earlier in the day today. With the case still ongoing, it is unclear who will have the last laugh.
But Abraham may well have the beginning of a smile on his face.
