Refusing to grant more time to the Sahara group of investment companies, the Supreme Court on Friday allowed the Securities and Exchange Board of India (Sebi) to take action against the companies if they failed to provide details about some three crore investors from whom the companies raised Rs 24,000 crore.
The court in its August 31 judgment had asked the two companies – Sahara India Real Estate Corporation and Sahara Housing Investment Corporation – to deposit with Sebi the amount collected and the original documents related to the investors.
The Sahara group has been seeking more time to submit the documents in view of the massive data involved. Many investors are said to be untraceable and their money will go to the government. Sahara had failed to submit the data before the September 10 deadline, following which Sebi approached the court.
When Sahara moved the court again on Friday, a bench headed by Justice K S Radhakrishnan told the counsel that the case has been disposed of . Now the order should be implemented. If the firms default, their property could be attached and bank accounts frozen.
Sahara earlier committed that it would submit all the documents by November end. It has already filed a review petition against the judgment, which had held that the optionally fully convertible debentures scheme through which the fund was raised was illegal. The court had appointed one of its retired judges, Justice B N Aggarwal, to supervise the implementation of the order. He has reportedly stated that Sahara has failed to hand over the documents to Sebi.
