Sahara Group Chairman, Subrata Roy, has extended an invitation to executives at the Securities and Exchange Board of India (SEBI) for an open debate, suggesting that this debate could be broadcasted live.
The escalation of tensions between SEBI and Sahara Group can be traced back to 2008, when two of the group's subsidiary companies sold convertible bonds valued at $3 billion. This transaction attracted nearly 30 million small investors.
The allegations against Sahara India Real Estate Corporation and Sahara Housing Investment Corporation revolved around breaching SEBI's codes of conduct. SEBI viewed the bond sale as illegal, asserting that it contravened their regulations and public interest, labeling it as an entirely 'private placement.'
Moreover, SEBI discovered various 'illegalities' associated with the deal, prompting them to demand a complete list of investors from Sahara. Following Sahara's failure to comply with this order, SEBI initiated the seizure of properties belonging to the firm.
In an official statement distributed to media outlets, Sahara maintained that they have fully reimbursed all investors, asserting that they have also remitted an additional sum of Rs.5120 crore to the market regulator. To bolster their position, Sahara published a prominent advertisement in leading newspapers asserting their integrity. This advertisement coincided with SEBI seeking the Supreme Court's approval to arrest both the Chairman and managing partners of Sahara.
Additionally, Sahara is now inviting the regulator to a one-hour open debate that could be televised. The advertisement also emphasized that there have been no complaints lodged by any investors, contradicting SEBI's assertion that a significant number of the investors are fictitious. Sahara declared their readiness to present all legitimate investors to any authority upon request.
Sahara's latest statements further allege that SEBI is waging a vendetta against the group. As the full-page ad has garnered attention, the ongoing conflict between the two parties appears poised to intensify.