SEBI Seeks Supreme Court's Intervention in Sahara Cases
The Securities and Exchange Board of India (SEBI) has filed a new petition with the Supreme Court, requesting that all cases against Sahara India Real Estate Corp Ltd, Sahara Housing Investment Corp Ltd, and its chief, Subrata Roy, be heard by the apex court.
Background of the Cases
Some of these cases were being heard by the Securities Appellate Tribunal in Mumbai, while others were before the Lucknow High Court. SEBI's petition seeks the transfer of all these cases to the Supreme Court, aiming for a unified judicial approach.
Key Requests in the Petition
- Transfer of Cases: SEBI requests that the Supreme Court take over all pending cases against the two Sahara firms and their chief.
- Restraining Other Authorities: The market regulator also asks that all courts and government authorities be restrained from entertaining any further applications by these firms or the Sahara Group.
Previous Supreme Court Order
In a significant development on August 31 of the previous year, the Supreme Court had directed these firms to repay over Rs.24,000 Crore to more than three crore investors who had invested in their OFCD (Optionally Fully Convertible Debentures) schemes. The repayment was to be facilitated through SEBI, with the court empowering SEBI to attach properties of these firms in case of non-compliance.
Recent Developments and Challenges
- Attachment of Properties: Following the firms' failure to repay, SEBI attached their properties in February. However, the regulator subsequently faced difficulties in obtaining the deeds for these properties, hindering the auction process.
- Sahara's Appeal: The Sahara Group chief, Subrata Roy, challenged the attachment order, approaching the Securities Appellate Tribunal (SAT), which has since postponed its hearing on the matter.
- Contention Over Attachment Notice: Sahara firms argue that they were not provided with a show-cause notice before the attachment, a claim SEBI disputes, citing the Supreme Court's August 31 order as sufficiently explanatory and inherently executive in nature.