The Supreme Court of India, Friday allowed the Securities and Exchange Board of India, the market regulator to initiate any appropriate action against the two real estate companies of Sahara group, if they cannot refund money to the investors within time limit.
"You take decision according to law. It is the duty of the SEBI," said a bench of two judges of apex court comprising Justice K S Radhakrishnan and Justice J S Khehar on Friday.
The court's direction came in the line of its previous order of August 31, 2012 in which it had ordered to Sahara to two companies of Sahara - SIRECL and SHICL to return to investors Rs.17,400 crore with 15 percent interest within three months and give the details of the investors within 10 days as Sahara had mopped up it through optionally fully convertible debentures (OFCDs) in 2008 and 2009.
But, it did not follow the court's order.
Taking on Sahara, the apex court bench said, "after so many years, the Sahara real estate companies have not furnished the detail of investors. We gave then time, still they have not done it".
The court also inquired how the time for furnishing the details of the investors was extended after the expiry of the ten days.
Noting that the details of the money to be refunded has not been made available within the period ordered by it, the apex court said, "Whatever it means let Sahara submit all the details and documents to show that all investments were genuine."
The court asked the senior SEBI counsel Arvind Dattar about the status report of all that had happened since the pronouncement of its judgment.
As Dattar said that SEBI would be filing periodic report every month on the status of execution of Aug 31 order, the court said, "We don't want to monitor. We only want status report."
The court declined to take note of the submission by senior counsel Gopal Subramanium, appearing for Sahara, that they were moving an application seeking the extension of time.
He told the court that they have "struck the structure" for making available the original records of the investors.
Subramanium told the court that Saharas have already given to SEBI the schedule along with the numbers of the trucks for the supply of the original documents. He said that they wanted to retain the photo copies of the investment papers which they would require for tax purposes.
Brushing aside the submission by Subramanium, Justice Khehar said: "We have not heard anything... put it in writing."
Declining to pass any order on SEBI's application informing the court that two Sahara companies were not complying with its orders, the court however, took on record Subramanium's submission that they would be filing an application seeking the extension of time.
--With IANS Inputs--
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