'Sahara Must Pay Rs. 62,602 Crore That It Collected From Public': SEBI Moves Supreme Court Seeking Custody Of Subrata Roy For Failure To Deposit

The Securities and Exchange Board of India (SEBI) has moved Supreme Court against Sahara India Real Estate Corporation Ltd. (SIRECL) and Sahara Housing Investment Corporation Ltd. (SHICL) for INR 62,602 crore which it had collected from the public.

The Market Regulator seeks that the Contemner(s) be held in contempt & be taken into custody, if it fails to deposit the said amount.

SEBI contends that the Sahara's had failed to comply with 2012 and 2015 orders which had directed the Companies to deposit the amount it along with 15% annual interest.

"Inspite of the aforesaid 'clear directions giving clear timelines, the respondents, in utter disregard, disrespect and disobedience of the directions of this Hon'ble Court, deliberately and wilfully, did not comply with any of the aforesaid directions and thereby committed contempt of this Hon'ble Court," SEBI has told Supreme Court

It is stated that Sahara claimed that almost 90%  of the refunds was claimed to have been done by it as on August 31, 2020 "but no adequate explanation was provided as to why these developments were not brought to the notice of this Hon'ble court which was seized of the matter."

In this context, the plea states,

".... that the entire group was using the facilities of Sahara India for collection and repayments, whose Managing partner is the Respondent Subrata Roy and the Respondent companies were partners in Sahara India on or around that time, it-was not possible that the Respondents were not in a position to indicate the large scale refunds that were claimed to have been made at that point in time"

Roy was arrested in March 2014 for failing to attend a contempt of court hearing and has been on bail since 2016. He has denied any wrongdoing.

SEBI states that the Saharas have "made no efforts whatsoever" to comply with the orders and directions..... On the other hand contemnors' liability is increasing daily and contemnors are enjoying their release from custody"

Apropos this, it is prayed that the Top Court pass orders the Contemnors/ Sahara's be directed to forthwith deposit the sum of INR 62,602 Crore in the SEBI Sahara Refund Account — failing which the Saharas be taken into Custody.

Sahara's Subrata Roy has recently been in the spotlight after they got a district court to stay the release of Netflix's series "Bad Boy Billionaires" featuring Roy, claiming it would damage his reputation.

Netflix later released the show after the court lifted its injunction.

The Market Regulator moved the Top Court on November 18.