Take action against Sahara if it doesn't follow judgement: Supreme Court to Sebi

The Supreme Court today told the Securities and Exchange Board of India (Sebi) that it could act against Sahara as per law should the company not follow the top court’s order on submitting investor-related documents concerning two real estate companies it owns.

In an August 31 judgement, the Supreme Court had directed two Sahara group companies—Sahara India Real Estate Corporation and Sahara Housing Investment Corporation—to deposit with the market regulator around Rs 24,000 crore that they had collected from investors as well as the original documents of investors within 10 days. The court ruled that the finance schemes run by the two companies were illegal, and ordered the firms to repay the amount, plus interest, to up to almost 3 crore small investors.

The companies failed to submit the documents before the September 10 deadline, following which Sebi approached the court.

"This is a disposed of case. Implement our orders. We can't pass any orders on Sebi application," the Supreme Court said today.

Sahara earlier said that it would submit all the documents by end-November and also file an application seeking review of the August 31 judgement. To this, the court said Sebi should see to it that the court’s order is implemented while Sahara was free to file the application.

After today’s verdict, the Sebi board will meet to decide on what action should be taken against Sahara, sources said.

The court had also stated that if the firms failed to refund the amount, Sebi could attach the properties of the companies and freeze their bank accounts.

The court had appointed retired judge, Justice B.N. Aggarwal, to oversee the matter. The former judge has already submitted his report to the court, saying Sahara failed to hand over the documents.

Earlier this month, Sahara had moved the Supreme Court seeking review of its verdict and challenging the decision on 55 counts.