The Telegraph
Thursday , January 10 , 2013
Since 1st March, 1999
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SC rejects Sahara review plea

New Delhi, Jan. 9: The Supreme Court today dismissed the Sahara group’s plea for a review of its verdict directing two Sahara firms to refund around Rs 24,000 crore to their investors with 15 per cent interest per annum.

A bench of justices K. S. Radhakrishnan and J. S. Khehar, which had passed a slew of orders against the group on August 31 last year, rejected Sahara’s plea.

“We do not find any inconsistency in the views expressed by both of us. On the other hand, all the contentions, legally and factually, raised by the appellants were examined, addressed and answered on all possible angles and dimensions,” the bench said in its order.

In August, the Supreme Court pulled up two Sahara group companies — Sahara India Real Estate Corporation Limited and Sahara Housing Investment Corporation Limited — for collecting money from small investors through fully convertible debentures.

The court ordered the group to repay the 2.96 crore small investors.

Sahara had sought a review of the judgment on the basis of new facts and documents, which it claimed supported its contention that there was nothing illegal about raising the money.

The bench said: “Even otherwise, all the records placed before us were meticulously examined and dealt with. Review petitions are, therefore, not entertained and, accordingly, stand dismissed. As a sequel to this, applications seeking permission for open court listing, intervention and /stay also stand dismissed.”

In its August order, the court has also asked the company to furnish the details of the investors to market regulator Sebi within 10 days.

However, since the company had not furnished the documents within the stipulated time, earlier, Sebi moved a contempt plea before the apex court, which is yet to come up for hearing.

On December 5, a three-judge bench of the apex court granted a mild relief to the company by extending the deadline to pay back its investors to the first week of February .

The bench headed by Chief Justice Altamas Kabir had asked the company to make its first payment of Rs 10,000 crore to Sebi within the first week of January, and the balance be paid in the first week of February.

The company has so far made a payment of around Rs 5,120 crore.

Sahara’s fresh application for further extension of time is pending consideration before the apex court.