Full text: Sahara statement on SEBI crackdown on its companies
Posted on: 11:28 PM IST Feb 13, 2013
New Delhi: The Securities and Exchange Board of India (SEBI) on Wednesday cracked down on Sahara group, freezing more than 100 bank accounts of two of its companies. Sources said that the immovable assets of the two companies were also frozen.
The SEBI also attached the assets and properties of Sahara India Real Estate Corporation (SIREC) and Sahara Housing Investment Corporation (SHIC), the sources said.
The action came days after the Supreme Court had questioned SEBI over the delay in action against Sahara. The apex court said the SEBI was free to freeze accounts and seize properties of Sahara Group's two companies for defying court order of refunding Rs 24,000 crore to investors.
Below is the full text of the statement:
As per Sahara, the total liability is not likely to exceed Rs. 5120 Crores, which amount has already been deposited with SEBI. As regards the instalments to be deposited with SEBI as per the order of the Hon'ble Supreme Court, Sahara has filed Interim Application before the Hon'ble Supreme Court interalia praying that Sahara be permitted to furnish security through a credible financial institution instead and in place of the payment of the balance instalments, since Sahara has already redeemed significant number of OFCD Holders and any further payments to SEBI would amount to double payment. The said Interim Application is pending and is likely to come up next week.
Further, today's order of SEBI for attachment of the assets is based on old facts and details of assets as of January, 2012. Since, then facts have changed in view of redemptions made by Sahara from time to time. This fact of redemption was known to SEBI. Hence, today's order does not take into account the changed facts and circumstances.
As per the order of the Hon'ble Supreme Court, the liability to refund the monies is of SIRECL and SHICL. Hence, attachment, of assets of the individuals by SEBI is incorrect. Whereas not only company has paid to SEBI enough amount which is much higher than outstanding liabilities of two companies, the fact also remains in the whole affair Sahara is genuinely concerned for investors. There are number of companies in India including Golden Forest Company where after Hon'ble Supreme Court's order to repay and the committee appointed (whose chairman was retired Chief justice of Delhi High Court) to repay was paid. But from 2004 till now, not a single investor has got back one rupee.