The Securities and Exchange Board of India (Sebi) has moved the Supreme Court asking it to direct two Sahara firms — Sahara Indian Real Estate Corp Ltd (SIRECL) and Sahara Housing Investment Corp Ltd (SHICL) — that illegally raised money from investors to pay Rs 62,602 crore to the regulator, in compliance with the apex court order of August 31, 2012 or cancel the parole of Subrata Roy, chief worker of the Sahara Group.
Sebi has also asked the SC to hear its application for appointing a receiver to oversee the entire business of the Sahara Group as it has failed to garner money that was to be deposited with Sebi in 2012.
The market regulator’s petition in the apex court said SIRECL and SHCIL have “not been complying” with the orders passed by the SC “despite the long rope provided to them” and even as their liability has increased over the years, Roy and other top officials of the group are “enjoying” the release from custody that is being extended by the court “from time to time without even any attempt at compliance with the orders” passed by the apex court in 2012.
The SC, in August 2012, had ordered the Lucknow-based conglomerate to deposit with the regulator over Rs 25,781.32 crore collected from nearly three crore investors through issuance of bonds by SIRECL and SHCIL in violation of Sebi norms, along with an interest of 15 per cent from the date of subscription of the bonds. It also asked Sebi to repay the investors of Sahara once the money is deposited by the group.
Subsequently, Roy was sent to jail on May 4, 2014, for not complying with the SC order. He has been out on parole since 2016.
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