SC & Sahara Saga: The apex Court ruled against Subrato Roy promoted Sahara group ordering two of its companies to refund Rs 24,000 Cr, along with 15% interest, to more than 2.2 crore small investors who had invested in their optionally fully convertible debentures (OFCDs) between 2008 and 2011.
The bench of Justices K S Radhakrishnan and K S Khehar asked SEBI to examine the issues relating to the genuineness of investors and refund while also giving it the liberty to attach the companies’ properties and freeze their bank accounts.
As per court verdict Sahara Group will pay approximately 38000 Cr i.e. 24000 Cr Principal and 14000 Cr interest.
The supreme court has observed that, “It seems the two companies collected money from investors, without any sense of responsibility to maintain records, pertaining to funds received. It is not easy to overlook, that the financial transactions under reference are not akin to transactions of a street hawker or a cigarette retail made from a wooden cabin.”
The apex court upheld the view of SAT and dismissed the argument of the Sahara group as they have collected huge sums of money from a large number of investors and it cannot be treated as a private placement.