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The Securities and Exchange Board of India (Sebi) on Friday moved the apex court, seeking the detention of Subrata Roy Sahara, chairman of the Sahara Group, and directors Ravi Shankar Dubey and Ashok Roy Choudhary.
The market regulator has also pleaded that the three and Vandana Bhargava, another director, be told to deposit their passports with the Secretary General of the court and be asked not to leave the country without approval.
It requested the Supreme Court to pass an order permitting a Sebi whole-time member to take measures for the arrest and civil detention of three Sahara Group officials, including Roy, and has sought further directions, said a Sebi lawyer who didn’t wish to be quoted.
Sebi’s latest move comes in the wake of its February 13 order for attachment of assets of two group companies — Sahara Housing Investment Corporation (SHICL) and Sahara India Real Estate Corporation (SIRECL) — and its directors Roy, Bhargava, Dubey, and Choudhary.
In its order, Sebi had directed them to furnish information of all their properties and bank accounts within 21 days. It couldn’t be ascertained whether Sebi’s latest petition before the apex court was triggered due to non-furnishing of this information.
The Sebi lawyer said the matter was likely to come up for hearing in the first week of April.
A Sebi spokesperson refused to comment. Sahara said in a statement: “Everyday, SEBI is maliciously leaking to media ... without any substance, against Sahara Group, to wreck personal vengeance, by some officers involved in handling with the matter.” It said Sebi has asked for civil detention but such provisions do not apply to SEBI. “... under the SEBI Act, application of Code of Civil Procedure is clearly barred and ruled out and also the fact that no question of any such non-compliance, on the part of Sahara officials do arise ....”
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PARIVAR PROBLEMS 2008-11: Sahara Group firms raise over Rs 24,029 crore |
June 2011: Sebi holds this illegal, orders refund
August 2011- May 2012: Sahara goes to tribunal, Supreme Court
August 2012: SC orders Sebi to execute refund in three months
November 2012: Sahara says only Rs 2,620 crore due, deposits Rs 5,120 crore, including buffer
November/ December 2012: Sebi moves SC saying Sahara did not co-operate, submit documents
February 6, 2013: Court asks why Sebi has not attached properties
February 13: Sebi attaches properties, freezes accounts of firms and group chief Subrata Roy, among others
March 7: Sahara moves SAT to quash Sebi move against Roy
March 15: Sebi moves SC for detention of Roy
The Supreme Court had, in its August 31 order, directed SHICL and SIRECL to refund about Rs 24,000 crore with interest to its over 30-million optionally fully convertible debentures investors. The Supreme Court and Sebi had said there were irregularities in the way the firms had raised the money from investors.
The court had asked Sahara to deposit the money with Sebi to facilitate the refund. Sahara had deposited only Rs 5,120 crore with the regulator and claimed the rest, Rs 19,400 crore, had already been paid to investors.
The Sebi order, however, had noted that Sahara had failed to furnish convincing documentation that established such a refund had taken place.
Sebi had already attached certain real estate properties, bank and demat accounts of the two companies and four individuals, and asked them to provide further information on any additional asset.
