Supreme Court Deals a Blow to Sahara Group in OFCD Refund Case
Sahara's Asset Valuation Under Scrutiny
In a significant setback for the Sahara group, the Supreme Court of India has expressed skepticism regarding the valuation of Sahara's assets, estimated to be worth Rs 19,000 cr by the group. This development is pivotal in the ongoing OFCD (Optionally Fully Convertible Debentures) refund case.
Restrictions Imposed on Subrata Roy and Directors
- Travel Ban: The Supreme Court has barred Sahara owner Subrata Roy and several directors of Sahara's real estate firms from traveling abroad.
- Property Sale Freeze: The court has also prohibited the sale of any Sahara properties, citing concerns over the group's compliance with regulatory directives.
Background to the Verdict
- Sebi's Requirement: The Supreme Court had earlier directed Sahara to submit property papers valued at Rs 20,000 cr to the Securities and Exchange Board of India (Sebi) as part of efforts to safeguard investor interests.
- Valuation Dispute: While the court found one set of properties worth Rs 1,000 cr to be satisfactory, it expressed dissatisfaction with the valuation of another property located in Versova, Mumbai.
Key Findings and Directives
- Irregular Fund Collection: The court noted that funds were collected from investors through irregular means, and the group was attempting to circumvent compliance.
- Payment Claims Under Scrutiny: Sahara firms claimed to have paid Rs 5,120 cr, stating that the remaining outstanding amount of approximately Rs 2,000 cr had been repaid through field officers. However, the legitimacy of these claims is under question.
- Immediate Compliance Required:
- Subrata Roy and the concerned directors must not leave India.
- Original papers for an additional Rs 19,000 cr must be submitted to Sebi within two days.
- Next Hearing Scheduled for December 11: The matter has been posted for further hearing, with the option for Sahara to seek a vacation of the interim order upon full compliance with the October 28 directive.