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Thursday, July 19, 2018

Reveal source of money refunded to investors or face probe: SC to Sahara

The court maintained that its order barring Sahara Chief Subrata Roy and other from leaving the country will continue.

New Delhi | Published: January 10, 2014 4:28:06 am

Fresh troubles seem to be brewing for the Sahara Group, as the Supreme Court on Thursday cautioned it of the “stick” and ordered for disclosing the source of money reportedly used in refunding investors. The court made it clear that breach of its order may result into a full-fledged investigation into the accounts of Sahara by the Registrar of Companies or the CBI.
A bench of Justices KS Radhakrishnan and JS Khehar was irate over a Sahara official writing to the Securities and Exchange Board of India (Sebi) that source of the money was “immaterial” and the only relevant fact was that more than Rs 20,000 crore had already been refunded to the investors, as per the court orders.
Terming the behaviour of the group and its directors as “obnoxious,” the court said: “Someone from your company has the audacity to say that source is immaterial. If you have refunded the money then you must have the record of the source from where you got the money.”
The bench cautioned the group of flouting the courts orders, noting: “We have been polite and generous to you but if you want us to use the stick, what to do.” “Don’t think that the court is helpless. We can ask the CBI and the Registrar of Companies to conduct probe against you… We will find out the source of money if you don’t reveal it. We would ask the probe agencies to find out,” said the court while continuing its restraint order against Sahara chief Subrata Roy and other directors from flying abroad.
The bench censured the group underlining instead of sorting out the issue, Sahara had been constantly changing stance. “We showed maximum indulgence to you but you never came out with truth during the last two years. No matter what you do, you have to give the amount,” it said, adding “if you (Sahara) have done blunder then we can’t help you”.
The court noted that the source of money could be tracked within ten minutes by every  registered company and hence Sahara cannot evade questions over how did it refund the money. “The two companies, being registered under the Sahara Group, would have to account for every rupee so it would not be difficult to locate the source of such huge money,” it said. The court asked the group to furnish details of the source of money by January 23 to the court as well as the Sebi.

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