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regular-article-logo Saturday, 22 June 2024

Market regulator Securities and Exchange Board of India to settle Sahara funds

Sebi chairperson Madhabi Puri-Buch said the death of Sahara group founder Subrata Roy would have no bearing on the issue

Our Bureau Mumbai Published 17.11.23, 07:41 AM
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The market regulator will continue with its efforts to settle the Sahara refund issue that has defied resolution for well over a decade.

Sebi chairperson Madhabi Puri-Buch said the death of Sahara group founder Subrata Roy would have no bearing on the issue since it involved two Sahara group companies - Sahara India Real Estate Corporation and Sahara Housing Investment Corporation.

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Roy died in Mumbai on Tuesday after a prolonged illness. His demise immediately put the focus on the Rs 25,000 crore of undistributed funds currently lying with Sebi."

Puri-Buch admitted that only a small part of the money about Rs 138 crore had been returned to the investors after a Supreme Court-ap- pointed committee vetted and cleared their claims.

The two Sahara group companies had raised funds in 2007-08 through Optionally Fully Convertible Debentures (OFCDS). In June 2011, Sebi had asked the two entities to refund money they had col lected through the OFCDS.

A year later, the Supreme Court ordered the refund of deposits to the investors along with 15 per cent interest.

Roy was arrested in 2014 on the orders of the Supreme Court after he failed to appear before it in a contempt case arising from the group's fail- ure to refund more than Rs 20,000 crore to investors.1 Sahara was asked to depos it an estimated Rs 24,000 crore with Sebi for further refund to investors. However, the group maintained it amounted to "double payment" as it had already refunded more than 95 per cent of investors directly.

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