Sahara Groups Faces Supreme Court's Ire Over Unrefunded Investor Monies
The Supreme Court of India has issued a stern rebuke to Sahara Groups for their failure to return Rs. 27,000 crore to investors, giving the conglomerate one week to comply with the court's directive. Sahara India Real Estate Corporation Ltd (SIRECL) and Sahara Housing Investment Corporation Ltd (SHICL) had previously been fined this substantial amount, mandated to reimburse approximately three crore investors. The Supreme Court, however, has discovered that Sahara Groups has yet to fulfill this obligation.
A bench presided over by Chief Justice Altamas Kabir pressed Sahara Groups to declare definitively whether they could refund the entire sum within seven days. Chief Justice Kabir, delivering a scathing critique of Sahara Groups, declared their plea unworthy of consideration, emphasizing the immutability of Supreme Court orders. He further censured the group for its blatant disregard of the court's mandate.
Senior advocate Gopal Subramaniam's attempts to explain the group's inaction were summarily dismissed by the bench. The court categorically rejected his justifications, deeming them unacceptable. Despite its strong stance, the bench granted Sahara Groups one additional day to confirm their ability to repay the outstanding amount.
Adding to the pressure on Sahara Groups, the Securities and Exchange Board of India (SEBI), the nation's market regulator, voiced its opposition to the group's conduct. SEBI informed the Apex Court of their filed petition against Sahara, urging stringent measures against them. The bench, acknowledging SEBI's concerns, underscored its primary concern for the ordinary citizens who had invested in the embattled group.
"The bench said that they can send the Sahara Group officials to jail if they wished. The bench added that yet it was not their concern but rather the common investors."
The tense atmosphere in the courtroom escalated when Chief Justice Kabir, visibly frustrated, silenced senior advocate Mukul Rohatgi, representing another Sahara firm, before he could begin his arguments. Mr. Rohatgi appeared for the other Sahara firm, but Chief Justice Kabir made him sit down without allowing him to argue.