Press Note from Sahara’s Lawyer Shri Gautam Awasthi

Rupees 40,000 Crores dues issue is wild imagination of media

Sahara’s Rs. 12,000 Crores are already with SEBI

1. Sahara says that report of Due amount of Rs 40,000 Cr is incorrect, since such amount or such observation was never made during the course of hearing either by the Counsel appearing for SEBI or by the Hon’ble Court or any other Counsel. The figure of Rs. 40000 Cr. is imaginary and same amounts to irresponsible reporting of Court proceedings. There is no pleading or any document in the Court record which mentioned the figure of Rs. 40000 Cr. The order dictated in the open Court on 13.03.2015 also does not bear this figure and therefore, these amounts to incorrect reporting of Court proceedings which further dented the image of Mr. Roy and two directors in the public eye.

2.In fact, the Court very fairly stated that amount payable was subject to verification and after verification all excess amount would be refunded Back to Sahara.

3.There is no observation pertaining to the reporting of one month to save group by the Hon’ble Court, same is misconceived.

As a matter of fact, the Hon’ble Court observed during the proceeding to Mr. Kapil Sibal, Senior Advocate that the outhouse facility along with secretarial staff etc. can be extended even up to “two months” provided a concrete proposal is put forward as far as the satisfaction of the bail bond of rest of the amount of about 6000 Cr. is concerned. Please note that Sahara’s two companies are asked to provide proposal for complying with the remaining amount out of bail amount of Rs. 5,000 Cr cash and Rs. 5,000 Cr. as bank guarantee and not for any imagery figure of Rs. 40,000 Cr. The period of 2 month was observed by the Hon’ble Court when Mr. Sibal requested for 8 weeks outhouse facility to finalize the transaction to satisfy the bail bond amount of Rs. 10,000 Cr. as ordered by the Hon’ble Court on 26.03.2014.

Therefore, the figure of 4 weeks as reported in the article is incorrect since Mr. Sibal sought 8 weeks’ time and not 4 weeks. Same is clarified to that extent.

4.The news represented that an ultimatum was given whereas the order passed by the Hon’ble Court makes it clear that the Hon’ble Court accepted the request of not appointing a Receiver since Mr. Sibal stated that a serious attempt has been made for finalizing a deal of which the documents will be provided to the Amicus Curiae and the Counsel for SEBI. This acceptance of the request was also noted in the order dated 13.03.2015. As a matter of fact, Mr. Sibal stated that the situation of appointment of a Receiver may not arise if an opportunity is given. There is nothing mentioned in the order passed on 13.03.2015 about any ultimatum and therefore same amounts to incorrect reporting and same is clarified to that extent.

5.The Hon’ble Court extended the facility of communication up to 5 hours a day to Mr. Roy and two directors of Sahara’s two companies, inside the jail premises which was not reported in the article. Further, jail authorities were also directed to facilitate Mr. Roy and two directors with two laptops for functioning which was also not reported in the article.

6.During the hearing, SEBI was directed to file an affidavit clarifying its stand when a letter was indicated to the Hon’ble Court by Mr. Sibal that a communication was issued to HDFC Bank by SEBI on 19.12.2013 that the order dated 21.11.2013 only applies to specific movable and immovable properties in a particular application, therefore, RBI has no cause of action to state that there was a violation by Sahara India Financial Corporation Limited of the order passed by the Hon’ble Supreme Court on 21.11.2013 and 04.06.2014.

7.Further, Mr. Sibal fairly stated during hearing that about Rs. 12,000 Cr. stands deposited with SEBI as on date out of which barely anything was disbursed by SEBI. The Hon’ble Court also made it clear that it will be open to argue on that issue at a later stage. However, the article in the front page of the newspaper reported that only Rs. 5,120 Cr. was deposited whereas nearly Rs. 12,000 Cr. stands deposited with SEBI as on date. Same is clarified to that extent.

SEBI versus Sahara: Rs. 22 crores versus Rs. 18000 crores

Sebi has around Rs.11, 500 crores of Sahara‘s money, including bank interest.

By the time Saharasri Subrata Roy shall come out, that is, when full bail amount is paid, Money of Sahara India Pariwar Company lying with Sebi will be Rs.18, 000 crores cash.  Since no bank is ready to give Bank Guarantee to Sahara India Pariwar without 100% cash margin, it is going to be Rs.18, 000 crores of cash with Sebi.

While in the last 26 months, Sebi had to pay only around Rs.2 crores. More importantly, Sebi came out with an All-India Media Advertisement, twice, inviting investors for repayments. But till now, they have received from all over India, a demand of Rs.20 crores only. A question can now arise that whether the investors exist or do not exist; meaning, are these all fictitious accounts?

Only verification can clarify this point, as mandated in Hon’ble Court’s order of 2012. Since then, in almost past 26 months, Sebi has not started verification; the reason best known to them.

About fictitious account, it must be mentioned here another issue pertaining to the Reserve Bank of India (RBI) which is as follows:

Between 2008 and 2012, on RBI’s order, Sahara paid back Rs.18, 000 crores under the command of RBI’s two Statutory Auditors and 3 RBI nominated Directors.  The bank account of that amount was controlled by the RBI.  A strict rule was followed that when RBI auditors finally checked the identity of all investors (KYC), only then the next months’ payments were all owed by the RBI and during the process, in 4 years, RBI did not find any fictitious account; not even one.

Sahara Group: Legal debate over Roy’s detention gathers pace

It’s been over six months that Subrata Roy, the flamboyant chief of Sahara, has been in Delhi’s Tihar jail. In the meantime, the hopes of his release have risen and ebbed. And as the days go by, it is becoming uncertain when he will be able to furnish Rs 10,000 crore to Sebi — a pre-condition set by the Supreme Court for his release.

Company sources say that it’s not that the company doesn’t have the money. The issue is Roy’s current predicament. “The entire world knows that he’s being forced to make distress sales to raise this amount and so he is getting badly discounted offers for his valuable overseas properties. Now, which businessman wants to sell his jewels at throwaway prices,” said a company executive.

Roy’s case — and along with him that of two other Sahara directors, Ashok Roy Choudhury and R S Dubey — has few parallels. Technically, Rs 10,000 crore is not a bail amount; bail was granted to him five months ago, but it came with the pre-condition of him paying Rs 10,000 crore for his release. Legal experts say this is an extraordinary pre-condition.

There is also lack of clarity about the charges that have been slapped against Roy and the two Sahara directors. If it is contempt of court — Roy refused to appear before the Supreme Court on the given date citing his mother’s illness — he has already served the maximum punishment of six months prescribed for the offence.

“The question to be debated is whether there is a reasonable limit for how long someone can be incarcerated under the present circumstances — or if the six-month limit prescribed under the Contempt of Courts Act applies here,” said Gopal Sankaranarayanan, senior advocate, Supreme Court.

Article 21 of the Constitution deals with an individual’s personal liberty. It states, “No person shall be deprived of his life or personal liberty except according to procedure established by law.”

Some feel that this Article is being violated. Abhishek Manu Singhvi said, “Although currently I am not arguing the case, in my professional opinion, the continued incarceration may well be held to be a violation of his right to life under Article 21 (of Constitution of India) and a fit ground for a curative petition.”

These legal points aside, it is now clear that Roy — about whom company executives say was not an original respondent in this case — will have to pay the amount as ordered by the Supreme Court. The question is whether he should be kept in prison until he coughs up with Rs 10,000 crore, or should he be released with due safeguards, allowed to negotiate the best terms for sale of assets, and told to pay the amount within a set deadline.

Roy has been in Tihar jail, under judicial custody, since March 4 this year. In early August, Roy was given a 10 working days to negotiate sale or lease of Sahara group’s hotel properties to raise the Rs 10,000-crore bail amount. According to people within the group, he has been making ‘relentless efforts to sell the properties’ in order to meet the criterion set forth by the apex court, ‘which shows his bonafide intention to comply with the orders passed by the court’.

Reference Link: http://timesofindia.indiatimes.com/business/india-business/Legal-debate-over-Roys-detention-gathers-pace/articleshow/44661645.cms

Sahara India: Legal debate over Roy’s detention gathers pace

It’s been over six months that Subrata Roy, the flamboyant chief of Sahara, has been in Delhi’s Tihar jail. In the meantime, the hopes of his release have risen and ebbed. And as the days go by, it is becoming uncertain when he will be able to furnish Rs 10,000 crore to Sebi — a pre-condition set by the Supreme Court for his release.

Company sources say that it’s not that the company doesn’t have the money. The issue is Roy’s current predicament. “The entire world knows that he’s being forced to make distress sales to raise this amount and so he is getting badly discounted offers for his valuable overseas properties. Now, which businessman wants to sell his jewels at throwaway prices,” said a company executive.

Roy’s case — and along with him that of two other Sahara directors, Ashok Roy Choudhury and R S Dubey — has few parallels. Technically, Rs 10,000 crore is not a bail amount; bail was granted to him five months ago, but it came with the pre-condition of him paying Rs 10,000 crore for his release. Legal experts say this is an extraordinary pre-condition.

There is also lack of clarity about the charges that have been slapped against Roy and the two Sahara directors. If it is contempt of court — Roy refused to appear before the Supreme Court on the given date citing his mother’s illness — he has already served the maximum punishment of six months prescribed for the offence.

“The question to be debated is whether there is a reasonable limit for how long someone can be incarcerated under the present circumstances — or if the six-month limit prescribed under the Contempt of Courts Act applies here,” said Gopal Sankaranarayanan, senior advocate, Supreme Court.

Article 21 of the Constitution deals with an individual’s personal liberty. It states, “No person shall be deprived of his life or personal liberty except according to procedure established by law.”

Some feel that this Article is being violated. Abhishek Manu Singhvi said, “Although currently I am not arguing the case, in my professional opinion, the continued incarceration may well be held to be a violation of his right to life under Article 21 (of Constitution of India) and a fit ground for a curative petition.”

These legal points aside, it is now clear that Roy — about whom company executives say was not an original respondent in this case — will have to pay the amount as ordered by the Supreme Court. The question is whether he should be kept in prison until he coughs up with Rs 10,000 crore, or should he be released with due safeguards, allowed to negotiate the best terms for sale of assets, and told to pay the amount within a set deadline.

Roy has been in Tihar jail, under judicial custody, since March 4 this year. In early August, Roy was given a 10 working days to negotiate sale or lease of Sahara group’s hotel properties to raise the Rs 10,000-crore bail amount. According to people within the group, he has been making ‘relentless efforts to sell the properties’ in order to meet the criterion set forth by the apex court, ‘which shows his bonafide intention to comply with the orders passed by the court’.

Reference Link: http://timesofindia.indiatimes.com/business/india-business/Legal-debate-over-Roys-detention-gathers-pace/articleshow/44661645.cms

Sahara Group thanks apex court for asset de-freeze

The Sahara Group has thanked the Supreme Court for lifting the freeze on its moveable and immovable assets so that it can raise the Rs 10,000 crore for part payment of dues, but also said it had repaid the bulk of money owed to investors.

“We are very thankful we got clearance of bank accounts and certain select properties,” Sudeep Seth, Sahara’s lawyer, said in a statement on the behalf of the group after the Supreme Court gave it the go-ahead Wednesday for sale of its assets in India.

“However, the fact remains that Sahara has already repaid 93 per cent of the investors, mostly in cash, and has submitted all repayment vouchers receipts and other documents in original with SEBI (Securities and Exchange Board of India), which SEBI has to verify.”

The group said the actual repayment that was pending amounted to just Rs 2,500 crore and that there was not even a single complaint against Sahara. The group also claimed that Rs 5,600 crore of its money was already lying with the markets watchdog.

“Of course, all the money shall ultimately come back to Sahara after verifications.”

De-freezing the assets of Sahara on Wednesday, an apex court bench of Justice T.S. Thakur and Justice A.K. Sikri also directed that the money so generated would have to be deposited in an account opened by the regulator.

Soon after the judgment, senior counsel Srinivasan Ganesh asked the court to grant five days’ parole to Sahara Group chief Subrata Roy to be with his ailing mother. The court asked him to file an application and said it will pass an order after the regulator’s reply.

“Today, we are reassured of justice in the Indian judiciary. Over the last 37 years, we have always been given justice on merit. We are reassured that the Indian judiciary can never go wrong,” Sahara lawyer Seth said.

“From November 2013, all of group’s bank accounts, every inch of immovable properties and movable properties were frozen and were under an embargo of the Hon’ble Court and SEBI,” he said.

“As a result, Sahara was not in a position to get or raise even Rs 100. The question is as to why Rs 5,000 crore cash plus Rs 5,000 crore bank guarantee bail order was given without lifting any embargo,” he said, referring to Roy’s quantum of the bail amount.

Seth also said the demand of Rs 20,000 crore plus interest imposed on the group to be paid to the regulator was tantamount fo Sahara being asked to pay twice for a single liability — and that, too, for one that had substantially been repaid.

“No financial institution can repay twice for one liability.”

Reference URL: http://businesstoday.intoday.in/story/sahara-group-thanks-apex-court-for-asset-de-freeze/1/206942.html

Sahara Careerthon – Sahara group lines up Rs 32,400 cr investment; 56k new jobs

Sahara group, whose legal battle with Sebi continues in Supreme Court over refund of over Rs 20,000 crore to investors, has made a surprise announcement of plans being afoot to hire over 56,000 new employees this year along with investments to the tune of nearly Rs 32,400 crore.

In three-page newspaper advertisements, the group has invited applications for senior positions across business verticals within and outside country and said that these more than 56,000 new jobs need to be filled by the end of 2014.

In three-page newspaper advertisements, the group has invited applications for senior positions across business verticals within and outside country and said that these more than 56,000 new jobs need to be filled by the end of 2014.

At the same time, it has also claimed that the group, which calls itself Sahara India Pariwar, is “committed to creating four lakh salaried positions in next three years”.

The businesses for which job applications have been invited include FMCG & retail, dairy, poultry, luxury real estate and lifestyle, food factory, low-cost housing, CSR, education and even cruises (Sahara Water Homes).

The businesses for which job applications have been invited include FMCG & retail, dairy, poultry, luxury real estate and lifestyle, food factory, low-cost housing, CSR, education and even cruises (Sahara Water Homes).

Besides job details, the group also disclosed specific investment targets for at least four business verticals and these investments total to an amount of Rs 32,394 crore.

For its ‘Luxury Retail: Sahara Global Master craft Ltd’ business, the group said that an investment of Rs 1,400 crore would be made over five years, while Rs 5,172 crore would be invested in Food & Beverages and Entertainment: QSR (Quick Service Restaurants).

Its ‘International Business: Macedonia (Europe)’ business is expected to see an investment of Rs 13,922 crore in dairy project and Rs 9,600 crore in hospitality project.

Further, healthcare would seen an investment of Rs 2,300 crore for 5-7 years, according to the public notice.

The group also claimed a huge asset base with a market value of “Rs 1, 52,518 crore” and a land bank of 36,631 acres.

This massive recruitment drive comes at a time when the group is caught in a legal battle with Sebi, which had charged it of raising over Rs 24,000 crore through various “illegalities” in issuance of certain bonds through two firms.

These two firms — Sahara India Real Estate Corp Ltd (SIREC) and Sahara India Housing Investment Corp Ltd (SHIC)– were asked to refund the money to investors, while the Supreme Court also asked the group to comply with Sebi orders.

Sahara group later deposited Rs 5,120 crore with Sebi and claimed that it was way above the outstanding amount due to be returned to investors as more than Rs 20,000 crore were already refunded directly.

The Supreme Court has refused to allow Sahara Group chief Subrata Roy to leave the country till the companies provide details of refunding Rs 20,000 crore to investors.

The apex court last week asked the group to furnish all the documents to reveal the source of Rs 22,885 crore which it claims to have refunded to the investors.

Besides, the group was directed to place all documents including the bank statements sought by Sebi before February 11 when the court would take up the case for further hearings.

Sahara Q Shop expands network; launches 100 exclusive stores in Delhi and NCR

‘Sahara Q Shop’, the FMCG and Quality Consumer Merchandise Retail Company of Sahara India Pariwar, launches its operations in Delhi and NCR region with 100 exclusive Sahara Q Shop Neighbourhood Convenience Stores. Sahara Q Shop has plans to open 400 such stores by 31st March 2014 in the region. Currently, there are 901 Sahara Q Shop Stores operating in 12 States. By the end of the current financial year the company has plans to have 10,000 (ten thousand) such stores across India. Two thousand of these stores will be opened in Metro Cities.
Earlier, Sahara Shop has entered the coveted record books of GUINNESS WORLD RECORDS by opening a record number of retail outlets across the country, at one time. Sahara Q Shop, on 1st April, 2013 at 4:00 p.m, simultaneously opened 315 Sahara Q Shop stores in 10 States across India.
Sahara Q Shop set with the aim to provide unadulterated, standardized high quality products offers a entire range of items in the category of Food (staples and processed food), Non-food (personal care and home care), General Merchandise, Consumer Durables and Lifestyle.
The exclusive retail outlets are part of branded chain of Sahara Q Shop Neighbourhood Convenience Stores, operating on franchisee/ exclusive retailer model and offering an extensive range of Sahara Q Shop brand of 378 unit quality products and 763 Stock Keeping Units (SKUs). Each exclusive franchisee retail outlet is a unique model launched by Sahara Q Shop in 3 formats of 300 sq. ft., 400 sq. ft. and 500 sq ft. area. The outlets will cater to 2000+ households from its neighbourhood, providing one of the primary shopping options for daily necessities in its catchment area. Under the franchisee model, the company provides all the necessary training, collaterals, in-store branding, marketing support to successfully run the store. The model has been designed to provide sustainable self employment avenues at local levels.
Mr. Romie Dutt, Executive Director, Sahara Q Shop, said “We have received overwhelming response from markets where Sahara Q Shop has launched its operational model for franchisee/exclusive retailers. It has emerged as a sustainable income model at appropriate price providing unadulterated 100% pure quality consumer merchandise to our esteemed customers in their neighbourhood.” He futher said, “Delhi and NCR region is an important market for us, we have further plans to expand the retail network in the region so that Sahara Q Shop quality products can be easily made available to the people of the region.”
About Sahara Q Shop
Quality Consumer Merchandise Retail Venture – Sahara Q Shop=Q=QUALITY=PURITY=OUR MISSION.
Sahara India Pariwar, a major business conglomerate of India, forayed into the Fast Moving Consumer Goods (FMCG) and quality consumer merchandise retail sector with the launch of ‘Sahara Q Shop’ on 15th August 2012. Sahara Q Shop’ was set with the vision to provide 100% unadulterated, quality consumer merchandise products to the citizens of India at the right prices. Today our product basket ranges in the categories like food (staples and processed food) non food (personal care and home care), General Merchandise, Consumer Durables and Lifestyle products spread across 378 unique products and 763 Stock Keeping Unit (SKU).
In order to make Sahara Q Shop quality products available to people from all walks of life with convenience, 40,000 + Sahara Q Shop Exclusive retail stores are planned across length and breadth of the country. Each of the stores will cater to around 2000 households from vicinity.
With the mission to curb the menace of prevalent adulteration practices in the market, Sahara Q Shop is committed to the guarantee of good health for you and your family.
It is Sahara’s commitment to ensure that every single product will under stringent quality test before being rolled out in the market. All house hold items will be available at fair market price.
We offer our esteemed customers
• Completely unadulterated best quality
• 100% right weight/quantity
• Fair price
• 100% disclosure policy

Supreme Court Orders Sebi not to read further advertisements

In SEBI Sahara Case, today SEBI started its arguments on the contempt petition filed by SEBI alleging violation of the SC order dated 5-12-12 by Sahara. At the closing of arguments, counsel for SEBI stated that the arguments made by him also covered the contempt petitions earlier filed alleging breach of the order dated 31-8 -12 and argued that Shri Subrata Roy Sahara should also be held liable, besides the directors for the contempt. The Court however did not issue notice of contempt against Mr Subrata Roy Sahara, on the second contempt Petition.

Whilst referring to affidavit filed by Sahara on 4-1-12, SEBI argued that in the said affidavit undertaking has been given, which has been violated.   The Hon’ble Supreme Court also enquired with SEBI, as to how the said other group companies, which are independent legal entities, are bound by the said affidavit, filed by the two Sahara companies.  Counsel for SEBI indicated that this issue will be addressed by him separately.

SEBI referred to an advertisement appeared in the news paper on 3^rd Sept. 2012 calling it as an instance of contemptuous conduct of Sahara. The Hon’ble Court, on referring to the said publication, observed that the same does not amount to contempt and indicated that SEBI may not read further advertisements.

Sahara blasts SEBI chief for ‘mischievous’ remarks

• SEBI has just one-point programme – to destroy Sahara
• Misleading, misinformation campaign
• ‘We are being singled out for punishment’
• Raises questions that why govt. depts. are not being punished

 

Hitting back at SEBI and its Chairman, Sahara India Pariwar has said that the market regulator has just one-point agenda to “destroy” the image of the diversified conglomerate.

Countering the allegations made by SEBI Chairman on the OFCDs raised by it, Sahara said in a public notice that he has recently “mischievously misled” the people. “Right from the beginning SEBI’s one point programme has been to hit and destroy Sahara by mischievously misleading campaign of misinformation though trial by media,” Sahara said.

Sahara recalled that when it promoted OFCDs for the first time in 2001, it had obtained a written permission for its OFCD issue from the Registrar of Companies (RoC) Kolkata under the Ministry of Corporate Affairs way back in 2001 and under Sec 60B (9) of the Companies Act, submitted prospectus to the same Registrar (filing the return) with the details of around 1.87 crore investors with their names, addresses and amounts raised etc.

 

Sahara is being accused of violating the rules pubic issue rules on the pretext that the raising of funds from more than 50 investors does not remain a private placement. But the fact is that even after informing of 1.87 crore investors in 2007, neither RoC nor any of the government departments raised any objection. On the contrary, in 2008, Sahara got permission from two RoCs – Kanpur and Mumbai – for raising funds through OFCD again. Moreover, all through these 10 years, various RoCs regularly did inspections, investigation and regularly took Balance Sheets and returns and other documents as per Companies Act. RoCs permitted Sahara and to that extent they were the concerned regulators for the OFCD, Sahara argued.

 

Recalling the SEBI’s wavering stand, Sahara said the regulator had forwarded a complaint against the Sahara companies – Sahara India Real Estate Corporation Limited and Sahara Housing Investment Corporation Limited – received in April 2010 to two different Regional Directors of Corporate Affairs Ministry, for appropriate action.

 

SEBI had even said in its letter to the two Regional Directors, who were concerned with the ROCs which permitted the OFCDs that the issue did not fall under the market regulator’s purview since the companies were unlisted. (Copy of the letter – http://sahara.in/furtherprecedents/docs/1.pdf)

 

Subsequently, Sahara pointed out, the Minister of State for Finance had informed the Lok Sabha in April 2010 itself on a question relating to CitiCorp’s OFCD issue that in the matters of unlisted companies issuing securities to several thousands of persons, SEBI does not exercise any jurisdiction. This statement was based on what the Executive Director, SEBI informed the Finance Ministry. (Copy of the Question & Answer at Parliament – http://sahara.in/furtherprecedents/docs/2.pdf)

 

In November same year, however, SEBI took a complete U turn and submitted through an affidavit in Lucknow Bench of Allahabad High Court that SEBI is the regulator for Sahara OFCDs, Sahara said.

 

Sahara pointed out in its public statement that SEBI should be severely punished for lying in Parliament or in its affidavit in the High Court. Any other citizen would have been jailed for such an act, Sahara said.

 

Mr. Mohan Parasaran ji, the then Additional Solicitor General of India (and now the Solicitor General) had also expressed his opinion on the query raised by the Ministry of Corporate Affairs that Sahara was right and SEBI wrong. He mentioned in his letter, “SEBI has no jurisdiction over the unlisted companies like the Sahara Group of Companies which are not intending to get themselves listed.” (Opinion of Mr. Mohan Prasanan – http://sahara.in/furtherprecedents/docs/8.pdf) 

 

Dr. Ashok Nigam, Additional Solicitor General of India, appearing on behalf of the Ministry of Corporate Affairs, also submitted through Affidavit in the Court that Sahara was right and SEBI was wrong. He also added, “In issuance of OFCD the petitioner company after their registration with the Registrar of Companies has been permissible under the law. The Central Government remains the regulating authority for the company. It has got its own control system in place which has been under constant review with the developments taking place in the corporate world and it has already increased its controlling aspect of such companies and would further strengthen the same by making keener and deeper scrutiny of private placement of companies”. (Copy of the Affidavit – http://sahara.in/furtherprecedents/docs/13.pdf )

 

In addition, as many as five other legal luminaries, including two former Chief Justices of India and one ex-Chairman of Securities Appellate Tribunal (SAT), expressed the opinion in favour of Sahara.

 

The Law Ministry with the signature of the then Minister Mr Veerappa Moily, officially communicated to the Ministry of Corporate Affairs (MCA) that Sahara was right and SEBI was wrong. MCA had, in fact, asked for the Law Ministry’s opinion, but they never produced it anywhere. But, somehow, Sahara got the copy and produced it in the court. SEBI has not yet reacted to it in the Court. (Copy of the document – http://sahara.in/furtherprecedents/docs/14.pdf )

 

Contrary to its view on Sahara, SEBI took an altogether different stand in the Kalpana Bhandari Case before the Bombay High Court that it did not has jurisdiction over unlisted public companies that did not intend to list their shares.

 

Similarly, in another case ‘Society for Consumers and Investors Protection Vs. Union of India’ in Delhi High Court in, SEBI took a view that it did not command jurisdiction, under Section 55A of the Companies Act, 1956, over unlisted public companies which did not intend to get listed.

 

Further, in response to the Prayag Infotech Hi-Rise Ltd., letter dated 27^th January, 2009, SEBI took a similar stand that unlisted companies did not come under its regulatory purview.

 

Stating that the company is being singled out for imposing a severe punishment, that too with a retrospective affect, Sahara asked as to why all the government departments are not being penalized. Had they not given repeated permissions Sahara would not have faced such a huge problem and injustice, the statement said and asked: “Is Sahara alone supposed to be solely responsible for the sanctity of law and legal system of the country that everybody should be hell bent upon punishing it with retrospective effect?”

 

On the current Scenario of its case on OFCD issue, Sahara explained that almost 3 years back it had voluntarily declared through a reputed Charted Accountant Firm that the liability, along with interest, of these two companies was Rs. 24,000 crores.

 

Sahara, which apprehended public violence across the country, began to refund the deposits much before that Supreme Court judgment of August 31, 2012 and some payments dragged up to September 20, 2012. Thus, Sahara’s liability was reduced to just Rs. 2,610 crores. Sahara also declared the Rs. 2500 crores as buffer amount subject to final verification of amounts. These figures were also certified by the same CA firm that declared the original liability of Rs 24,000 crores.

 

Following the Supreme Court order, Sahara deposited Rs 5120 crores with SEBI but the regulator is yet to pay to the investors. Is this the SEBI way of protecting the interest of small investors?

 

Sahara pointed out that SEBI accepted the liability figure of Rs. 24,000 crore as suited them and was not ready to accept the updated figure of Rs 2610 crores. Both the figures have been provided by Sahara itself and they are not come out as a result of any investigation by SEBI or any other body. Moreover, SEBI is supposed to refund about Rs 2000 crore to Sahara after refunding Rs 2610 crore to investors.

 

“It is important to note that there has been not a single complaint against Sahara. Had the payments not been made, there would have been violence and complaints throughout the country,” Sahara said and pointed out that nothing of this sort has happened.

 

Sahara said that the future of over 11 lakh workers is at stake and all that the company wants is justice.

 

For details the following link can also be consulted – http://sahara.in/furtherprecedents/

 

Sahara India buys Lucknow franchise in Indian Badminton League

Lucknow: Sahara India Pariwar on Tuesday joined the Indian Badminton League (IBL) as it bought the Lucknow franchise ahead of the inaugural first-of-its-kind event in the sport to be played August 14 to 31.

A major business conglomerate and the prime promoter and patron of sports in India, Sahara’s Lucknow franchisee will be one of the six teams to be competing in the championship.

Speaking on the occasion, Subrata Roy Sahara Managing Worker & Chairman of the company said, “We are proud to associate with this initiative of Badminton Association of India. Indian Badminton League will boost the sports of Badminton and will redraw the attention of people towards it.”

“I am sure that sure that the league will also help in identifying fresh talent and will give a platform of international standard for grooming and competing, eventually bringing laurels to our beloved nation,” he added.

Akhilesh Das, president, Badminton Association of India, said, “I am grateful to ‘Saharasri’ and Sahara India Pariwar, for coming forward in support of Badminton. The Group has always accorded priority to various forms of sports and I hope this will encourage other corporates to come forward in support of the game of Badminton.”

Mumbai, Pune, Hyderabad, Delhi, Bangalore and Lucknow are the six cities that will feature in the first edition of IBL.

Each franchise will host a two-day leg and the USD one million event will have a grand total of 90 matches. The top four franchises will clash in the semifinals and the winners will meet in the grand final on August 31 in Mumbai.