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Nov 03, 2012 at 04:02pm IST

SEBI files contempt plea against Sahara in Supreme Court

New Delhi: Market regulator SEBI on Friday filed a contempt petition against the Sahara Group in the Supreme Court for not complying with its directions relating to refund of about Rs 24,000 crore by its two firms to their investors. The petition by SEBI said the two firms, Sahara India Real Estate Corporation (SIREC) and Sahara Housing Investment Corporation (SHIC), have not followed the apex court's direction to furnish within 10 days the information about the investors.

Sources said the market regulator has also accused Sahara group of not complying with the August 31 orders strictly. The contempt petition was filed two weeks after the apex court had asked SEBI to take action as per the law for not following its directions to SIREC and SHIC to refund around Rs 24,000 crore to their investors within three months with 15 per cent interest per annum. A bench of justices KS Radhakrishnan and JS Khehar on October 19 had asked SEBI to take action as per the law by drawing inference from its August 31 judgement.

"We have given all directions. What is the consequence of non-compliance is stated in the judgement," it had said. Last week, SEBI had reportedly said it plans to hire professional investigating agencies to help it probe matters relating to Sahara group for implementation of a Supreme Court order about refund of the money. In stinging observations against the firms for violating rules and regulations in raising funds from common investors, the apex court had said such economic offences must be dealt with "iron hand".

SEBI files contempt plea against Sahara in SC

The petition said that two firms - Sahara India Real Estate Corporation and Sahara Housing Investment Corporation failed to refund its investors.

It had said if the firms fail to refund the amount then SEBI can attach their properties and freeze the bank accounts. The court had also appointed one of its retired judges, Justice BN Aggarwal to oversee the action taken by the SEBI against the two Sahara group firms.

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