SC issues 2nd contempt notice to Saharahttps://indianexpress.com/article/news-archive/web/sc-issues-2nd-contempt-notice-to-sahara/

SC issues 2nd contempt notice to Sahara

The Supreme Court on Wednesday issued another contempt notice against Sahara Group’s two companies,which were ordered to refund Rs 24,000 crore

The Supreme Court on Wednesday issued another contempt notice against Sahara Group’s two companies,which were ordered to refund Rs 24,000 crore “illegally” raised through optionally fully convertible debentures.

A bench of Justices KS Radhakrishnan and JS Khehar slapped the fresh contempt notice on Sahara India Real Estate Corporation and Sahara Housing Investment Corporation over their reported failure to deposit money with the Securities and Exchange Board of India (Sebi) for disbursal to investors.

While the first contempt notice was pertaining to the companies’ failure to refund the money by November 30,the fresh notice relates to their failure to hand over outstanding money to Sebi by the extended time of February.

A three-judge bench had,on December 5,extended the November 30 deadline,granting nine weeks more time to pay back Rs 24,000 crore with 15 per cent interest,with an immediate upfront payment of Rs 5,120 crore.

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The balance amount was to be deposited with Sebi in two installments to be cleared by early February.

The first installment of Rs 10,000 crore was to be paid by the first week of January 2013 and the remaining by the first week of February 2013. 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,Sebi has alleged. “You must give a definite answer why this order has not been complied with,” said the bench on Wednesday,seeking categorical explanation from the two companies.

While adjourning the case for July 30,the bench also told Sahara group that no further time would be given to the companies and they must not seek any more adjournment in the case.

On the last date of hearing,the court had cautioned that Sahara chief Subrata Roy and directors of its two companies will have to appear before it if its order is not complied with.