Sahara Firms Assert Refund Completion to Real Estate Investors
Subrata Roy, chairman of Sahara groups, asserts that Sahara real estate firms have already refunded the due amount to investors. This follows a December 9 advertisement indicating that Sahara India Real Estate and Sahara Housing Investment have paid SEBI Rs. 2,620 crore, along with an additional Rs. 2,500 crore as a buffer amount.
Supreme Court Extends Refund Deadline
The Supreme Court recently granted both Sahara group firms a three-month extension for the refund, requiring payment in two installments by the first week of February. This decision followed a colorful advertisement published by Sahara India Pariwar in major newspapers, stating the firm's liability as a mere Rs. 2,620 crore. The advertisement claimed that the group has progressively redeemed the Optionally Fully Convertible Debentures (OFCDs) over time, and that the combined liability of Sahara India Real Estate and Sahara Housing Investment stands at Rs. 2,620 crore. This represents slightly over 10% of the initial fine of Rs. 24,000 crore, purportedly collected from three crore investors nationwide.
Sahara's Financial Statement
Sahara India Pariwar’s provisional financial statement, published on December 3, revealed that repayments on the OFCDs began in 2008-09. It further detailed that Sahara India Real Estate Corporation Ltd. and Sahara Housing Investment Corporation Ltd. have almost entirely cleared a liability of approximately Rs. 33,000 crore. Sahara has proposed to pay Rs. 5,120 crore to the Apex Court, asserting that the amount will resolve any outstanding OFCD liability. The December 9 advertisement also highlighted that Sahara’s payment of Rs. 2,620 crore to SEBI, plus an additional buffer of Rs. 2,500 crore. This extra sum, as per the advertisement, is intended to preempt any potential difficulties for the companies.
Supreme Court's Order and SEBI's Request
On December 6, the Supreme Court directed Sahara to complete their payments in installments by the first week of February. The bench, headed by Chief Justice Altamas Kabir, ordered an initial deposit of Rs. 5,120 crore. Simultaneously, SEBI’s request to have Justices K.S. Radhakrishnan and J.S. Khehar, the judges who delivered the August 31 verdict mandating Sahara's refund of Rs. 24,029.73 crore to investors, preside over the case was declined.