SEBI versus Sahara

On 27/10/2012 SEBI came out with half page advertisements drawing attention of Bond Holders of Sahara India Real Estate Corporation Ltd. (SIRECL) and Sahara Housing Investment Corporation Ltd. (SHICL). It said – DON’T BE FORCED !!! DON’T BE MISGUIDED !!!

The Supreme Court vide its order dt. 31/8/2012 had directed the two Sahara companies to refund the amounts collected by them through red herring prospectuses along with interest at 15% p.a. to SEBI within 3 months i.e., by 30/11/2012 and to furnish all relevant documents to SEBI within 10 days.

SEBI ad said the Saharas have not submitted the relevant documents. SEBI has been receiving complaints from investors that they are being forced by Saharas/their agents/officials to switch-over their investments to other schemes in other Sahara Group Companies. Some investors have also complained that their investments have been switched over to the said schemes of Sahara Group Companies without their consent. SEBI advised the subscribes to the Bonds of SIRECL and SHICL to hold on to the original documents relating to Bonds and produce the same to SEBI when called for an not to yield to any pressure from any person for converting or switching over their investments in Bonds to any other Schemes like Q Shop etc.

Sahara owes 24,000 crore rupees to investors. It is trying to avoid making those payments. Sahara came out with full page ads on 1/9/2012 claiming they have done lot of good work but instead of getting a pat on their back faced injustice from a faulty system. Sahara blamed Income Tax Department, Reserve Bank of India and the machinery (SEBI?) that presented the facts incorrectly before the Respected Judges of Hon’ble Courts. Sahara did not say they will honour the Supreme Court judgment and refund the amounts to investors. Instead of spending crores of rupees on ads it would have been better for Sahara to use that money to refund the investors.

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