Dealings with Sahara? SEBI Warns the Public

by Paul Joseph on February 25, 2013 · 0 comments

After attaching the properties and the freezing their accounts, The Securities and Exchange Board of India (SEBI) asked the people not to enter into any dealings with the Sahara group. A couple of weeks back, SEBI attached the properties of two Sahara Group firms. The attached properties include both movable and immovable properties. Failing to comply with the order of Supreme Court, finally Sahara faced a freezing and attaching order from the market regulator. However the market regulator did not stop with the attachment order. But it continued to urge the public not to get in to any form of dealings with the two firms- Sahara India Real Estate Corp Ltd and Sahara Housing Investment Corp Ltd . SEBI attached the properties not only of these firms but also its promoters. The attachment order froze the accounts of its directors and promoters including Mr. Subrata Roy Sahara. Besides the Sahara Chief, other promoters – Vandana Bhargava, Ravi Shankar Dubey and Ashok Roy Choudhary also will be facing the attachment order. Their properties were also attached and frozen. Supreme Court had ordered these subsidiary firms of Sahara to repay over Rs.24000 Cr collected through OFCD from over 3 Cr investors. The apex court of India had empowered the Market regulator to seize the properties of these firms in case they fail to refund. Once the market regulator found that the firms have failed to refund the amount, it seized all the properties of these firms. However on the other hand, Sahara had announced that they have already refunded the amount to the investors. They also stated that they have deposited an additional amount of over Rs.5000 Cr with SEBI. While the argument is still going on, SEBI attached their properties stating that they have not complied with the Supreme Court Order. Moreover the market regulator had asked the public not to enter into any form of business relations with Sahara group firms .

[via India Real Estate Monitor]

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