Show Source Of Rs 18,000 Crore Refunds, Supreme Court Tells Sahara Chief
The top court asked Sahara to show the source of Rs 18,000 crore refunds The court also directed Sebi to look into how Sahara is raising money Sahara chief Subrata Roy is currently out on parole
The Supreme Court today asked Sahara Group chief Subrata Roy to show the source of money as proof, after the group claimed that it has refunded Rs 18,000 crore to investors.
We will close this entire Pandora's box if you show us the source of refund," the court said.
The court also said that it was difficult to digest that Sahara had refunded around Rs 18,000 crore in two months by cash to investors.
After the top court hearing, Sahara Group in a statement said the money collected through optionally fully-convertible debentures (OFCD) were invested in various assets and the group companies made the money available when the need arose for making repayments to the investors.
In this long-running case, the Supreme Court had ordered Sahara in August 2012 to deposit with capital market Sebi over Rs 24,000 crore collected from nearly three crore investors through issuance of certain bonds.
The top court today also directed Sebi to look into how Sahara is raising money through property sale abroad. The court had earlier asked Sebi to initiate the process of selling "unencumbered" properties of Sahara group, whose title deeds are with the market regulator.
Mr Roy is currently out on parole. The court had earlier extended Mr Roy's parole, which was granted on humanitarian grounds following the death of his mother, till September 16.
The court will hear the case again on September 16.