Will refund Rs 24,000 cr to investors in 3 mths: Sahara to SC

Sahara Group on Friday assured the Supreme Court that its two companies which had raised Rs24,000 crore through Optionally Fully Convertible Debentures (OFCDs) from their investors will refund the amount within three months.

"We will refund the amount. There is no question of going back," senior advocate Gopal Subramaniam, appearing for the company, told a bench headed by Justice KS Radhakrishnan.

He also pleaded with the bench to grant the firms some time to sort out the "disagreement" with SEBI which has alleged that the company is not supplying to it all the documents pertaining to the investors, as per the apex court's previous order.

The bench was hearing an application by SEBI, which has alleged that the Sahara Group has not furnished all documents in its custody to the market regulator as was directed by the apex court to do by September 10.

The bench after hearing the arguments posted the matter for further hearing on October 19. The apex court on August 31 had said that if the companies — Sahara India Real Estate Corporation (SIREC) and Sahara Housing Investment Corporation (SHIC) — fail to refund the amount then SEBI can attach properties and freeze bank accounts of the companies.

It had asked the companies to refund the money to their investors within three months with 15% annual interest. It had also asked Sahara to furnish all its documents to the regulator.

The court had also appointed one of its retired judges, Justice BN Aggarwal, to oversee the action taken by SEBI against the two Sahara firms. The bench had said the civil and criminal liabilities should be imposed on the company for indulging in such economic offence.