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SC directs Sahara to refund Rs 24,000 crore to investors

Aug 31, 2012 at 03:50pm IST

New Delhi: In a major setback to the Sahara Group, the Supreme Court has directed Sahara to deposit over Rs 24,000 crore that it had collected through OFCD (optionally fully convertible debentures) with PSU banks.

The court has granted Sahara India Real Estate Corporation and Sahara Housing Investment Corporation three months to deposit the amount. Sahara has been asked to give a list of all the investors to SEBI in the next 10 days.

The two-judge bench of Justice KS Radhakrishnan and Justice JS Khehar directed SEBI to take action against Sahara India Real Estate Corporation and Sahara Housing Investment Corporation, if they fail to refund the money.

The apex court allowed the regulatory body to attach properties and freeze bank accounts of the two companies if they did not comply with its order. The apex court has also directed SEBI to conduct a probe against the two Sahara companies to find out their actual subscriber base.

The court has appointed retired Supreme Court judge BN Agrawal to oversee the refund of this amount to investors.

(With additional information from PTI)

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