Securities and Exchange Board of India (SEBI) Warnings Against Sahara Group
The Securities and Exchange Board of India (SEBI) has issued a warning to the public, advising against any dealings with two firms under the Sahara Group, whose properties have been attached by SEBI.
Properties Attached by SEBI
On February 13, SEBI ordered the attachment of all movable and immovable properties belonging to Sahara India Real Estate Corp Ltd and Sahara Housing Investment Corp Ltd. Additionally, the properties of their three promoters and directors were also attached.
Reasons Behind SEBI's Action
SEBI took this step because the Sahara firms failed to comply with a Supreme Court order. In August 2012, the Supreme Court directed these firms to repay over Rs. 24,000 crore to the OFCD investors. The court also empowered SEBI to seize the properties of these firms if they failed to pay the amount within the specified time.
Public Advisory by SEBI
In a recent statement, SEBI urged the investors and the public to avoid entering into any business deals with the Sahara Group. The statement emphasized that doing so would be perilous for investors.
Properties and Accounts Seized
SEBI stated that it has already attached the properties of these two subsidiary firms of Sahara. The market regulator has seized all movable and immovable properties and bank accounts of all Sahara promoters, including Subrata Roy. Properties of other promoters – Vandana Bhargava, Ravi Shankar Dubey, and Ashok Roy Choudhary – were also attached.
Additional Measures
In a notice to the public, SEBI warned people not to enter into any sort of business with the above-listed persons. SEBI also froze the accounts of these individuals.
The attached assets include the Aambey Valley township project in Pune, among other projects. Besides this ultra-luxury residential project, around 64 other projects of the firms will be affected by SEBI’s attachment order. Most of these projects are part of Sahara City Homes.