In a breather to Sahara group, the Supreme Court today said the order of the Securities Appellate Tribunal (SAT) directing its two companies to refund around Rs 17,400 crore to their investors can wait till January 8.
The apex court said the order of the SAT granting six weeks to refund the amount to investors will be kept in abeyance and further order on this will be based on the next hearing which will be on January 8.
"We extend the period up to the next hearing," a bench comprising Chief Justice SH Kapadia and Justices AK Patnaik and Swatanter Kumar said.
The bench directed the two companies to file a detailed affidavit explaining how it will protect the interests of their 2.3 crore investors who have put in their money in Sahara India Real Estate Corporation (now known as Sahara Commodity Services Corporation Ltd) and Sahara Housing Investment Corporation.
The bench directed the companies to place before it their 2010-11 balance sheets and statements of accounts for November 2011 by January 8, the next date of hearing.
"Net worth of the companies, particularly assets against which liability has been created, financial statements, including balance sheets of 2010-11 and statements of accounts of the companies of November 2011, shall be mentioned in the affidavit," the bench said.
It said the affidavit will also show how the firms are to secure liabilities that they have undertaken and protect the investors.
The apex court also issued notices to the central government and to Securities and Exchange Board of India (Sebi) seeking their responses on Sahara group's plea challenging SAT's October 18 order, directing it to refund the money, raised through optionally fully convertible debentures (OFCD) to investors within six weeks.
It extended till January 8 the time limit set by SAT which had passed the order on Sahara group's appeal against Sebi's June order asking the group's firms to return the money collected from investors through financial instrument OFCD on the ground of violation of regulatory norms.
The stock market regulator had also restrained the two entities from accessing the securities market for raising funds till payments were made to the satisfaction of Sebi.
The two companies and its promoter Subrata Roy Sahara, and the directors -- Vandana Bhargava, Ravi Shankar Dubey and Ashok Roy Choudhary -- were told jointly and severally to refund the collected money.
The company had then approached the Supreme Court which asked it to move the Tribunal.
While dismissing the appeal, SAT had held the market regulator has jurisdiction over such fund-raising schemes.
