Twist in The Story: Sahara Targets On SEBI in Patna High Court

Sahara India gave its reply in the Patna High Court in the issue of repayment of investors. Taking a dig at the capital markets regulator, Sahara said that the amount of Rs 24 thousand crore deposited with SEBI is for repayment of investors. But SEBI has not paid the investors in the companies of the whole and this huge amount is lying in vain.

Senior advocate Umesh Prasad Singh, appearing in the High Court on behalf of Sahara,

said in a written reply that in the last nine years, SEBI has paid only Rs 128 crores to the investors of Sahara Group of Companies. It was argued on behalf of the company that no order has been passed by the Supreme Court or any other court restraining SEBI from making repayment to investors of companies/ societies other than the two companies of Sahara. Whereas the investments made by those companies have been frozen by the Supreme Court.

Advocate Singh said that in a writ petition filed before the Lucknow High Court, the market regulator SEBI itself had said that the money received from Sahara would be used for all other investors including Sahara Q Shop. SEBI had also said that in case of any obstruction, the money will be returned to Sahara along with interest. On behalf of the company, it was said that SEBI did not live up to its promise and it has neither paid the investors nor refunded the money to Sahara.

SEBI will have to reply by March 25

Singh said that SEBI’s counsel could not give a satisfactory reply to Sahara’s submissions and the Patna High Court has directed the market regulator to file its written reply in this regard by March 25. Apart from this, it has also been directed towards the court that a responsible and senior officer of SEBI will have to appear in the court to answer all the questions raised.