Skip to main content

Sahara cannot be trusted any more: Supreme Court

Holding that it was playing 'hide and seek' and cannot be trusted any more, the Supreme Court today directed the Sahara group to hand over title deeds of its properties worth Rs 20,000 crore to SEBI warning that failure to comply would mean Subrata Roy cannot leave India.


Making it clear that there is no "escape" from depositing the investors' money with the market regulator, the apex court also asked the group to also give valuation reports of the properties to SEBI which will verify worth of assets.

A bench of justices K S Radhakrishnan and J S Khehar, which was about to restrain Roy from leaving the county till documents are handed over, however, said that he will not be allowed to go abroad without its permission if order is not complied in three weeks.

Roy's counsel had, earlier, pleaded that his reputation and business will be hit.

"You have driven everybody round. From day one restraint was ours," the bench replied when Roy's counsel C A Sundaram pleaded that his behaviour has never caused any suspicion.

"You indulge too much in hide and seek. We cannot trust you any more," the bench said adding "There is no escape for you and the money has to come."

The bench, however, assured the Sahara that its interests will be protected if investors money is paid.

"Rest assured that we will protect you if you give the money," it said and posted the case for hearing on November 20 when it would consider passing further orders on what to be done to the property, whose title deeds will be handed over to SEBI.

At the outset, Sundaram submitted that it is not possible to pay Rs 20,000 in cash and the company would liquidate if it is directed to pay cash.

"I am finished if I have to pay Rs 19,000 crore cash. My company would liquidate. I am over as company if I have to pay the case," he said adding that banks are also not willing to grant loan as they do not consider it safe.

He gave details of properties including Ambey Valley and said that title deeds of various assets would run in thousands of pages as 30,000 title deeds are there.

SEBI, however, expressed reservation over taking title deeds and said that the group itself should sell the properties and hand over the cash to it.

But the bench asked SEBI to go through the title deeds and valuation records of the properties to be handed over to it by Sahara.

"Examine the title deeds and find out its worth. You can also examine how safe it is," the bench told SEBI's counsel Arvind Datar, who submitted that proceedings for evaluation of property would give rise to may other issues and would amount to going into a "mine field".

"Everything will be done. You are underestimating the Supreme Court," the bench told Datar.

The court was hearing three contempt petitions filed by SEBI against Roy, the two firms--Sahara India Real Estate Corp Ltd (SIREC) and Sahara India Housing Investment Corp Ltd (SHIC)--and their directors.

It had on August 31 last year directed the Sahara group to refund Rs.24,000 crore by November end. The deadline was further extended and the companies were directed to deposit Rs 5,120 crore immediately and Rs 10,000 crore in first week of January and the remaining amount in first week of February.

The group, which had handed over the draft of Rs 5,120 crore on December 5, has failed to pay the rest of the amount.

It had directed the two companies to refund the money to their investors within three months with 15 per cent interest per annum. It had also said SEBI can attach the properties and freeze the bank accounts of the companies if they fail to refund the amount.

The two companies, their promoter Roy and directors Vandana Bhargava, Ravi Shankar Dubey and Ashok Roy Choudhary were told to refund the collected money to the regulator.

Article referred: http://timesofindia.indiatimes.com/business/india-business/Sahara-cannot-be-trusted-any-more-Supreme-Court/articleshow/24827352.cms

Comments

Most viewed this month

Partition proceedings are vitiated even if single co-sharer is not made party or is not served in accordance with law

Cause Title :  Bhagwant Singh vs  Financial Commissioner (Appeals) Punjab, Chandigarh,  CWP-2132-2018 (O&M), High Court Of Punjab & Haryana At Chandigarh Date of Judgment/Order : 31.08.2022 Corum : Hon’ble Mr. Justice Sudhir Mittal Background A large parcel of land was owned by the Nagar Panchayat. Thereafter, some of the co-sharers sold their shares to third parties including the petitioners herein. On 22.11.1995, respondents No.3 to 5 filed an application for partition of the land. The petitioners were not impleaded as parties.  On completion of proceedings, sanad was issued on 28.08.1996. Vide two separate sale deeds dated 28.05.2008 respondents No.3 and 5 sold some portion in favour of respondent No.6 and 7. These respondents sought implementation of the sanad resulting in issuance of warrants of possession dated 05.06.2008. Allegedly, it was then that the petitioners realized that joint land had been partitioned and that proceedings h...

Power of Attorney holder can also file cheque bounce cases: Supreme Court

The Supreme Court has held that a criminal complaint in a cheque bounce case can be filed and pursued by a person who holds a power of attorney (PoA) on behalf of the complainant. A three-judge bench headed by Chief Justice P Sathasivam gave the "authoritative" pronouncement on the issue, referred to it by a division bench in view of conflicting judgements of some high courts and the apex court. "We are of the view that the power of attorney holder may be allowed to file, appear and depose for the purpose of issue of process for the offence punishable under Section 138 of the Negotiable Instruments Act (which deals with cheque bounce cases)," the bench, also comprising justices Ranjana Prakash Desai and Ranjan Gogoi, said. The bench, in its judgement, said, "...we clarify the position and answer the questions in the following manner: "Filing of complaint petition under Section 138 of Negotiable Instruments Act through PoA holder is perfectly legal...

Christian who reconverts as Hindu SC will get quota benefits

Amid the controversy over “ghar wapsi”, the Supreme Court on Thursday ruled that a person who “reconverts” from Christianity to Hinduism shall be entitled to reservation benefits if his forefathers belonged to a Scheduled Caste and the community accepts him after “reconversion”. Citing articles by B R Ambedkar and James Massey, and reports by Mandal Commission and Chinappa Commission, the court said: “There has been detailed study to indicate the Scheduled Caste persons belonging to Hindu religion, who had embraced Christianity with some kind of hope or aspiration, have remained socially, educationally and economically backward.” The bench of Justices Dipak Misra and V Gopala Gowda held that a person shall not be deprived of reservation benefits if he decides to “reconvert” to Hinduism and adopts the caste that his forefathers originally belonged to just because he was born to Christian parents or has a Christian spouse. Expanding the scope of a previous Constitution benc...