Seeks Compliance Report On Court Order By Today
New Delhi: The Supreme Court on Monday gave two Sahara companies 24 hours to decide whether they were complying with the apex court’s three-month-old directive to refund Rs 24,000 crore to nearly three crore investors through market regulator Sebi or face the consequences.
“Tell us by tomorrow (Tuesday) whether you are ready to pay up or face the music,” a bench of Chief Justice Altamas Kabir and Justices S S Nijjar and J Chelameswar said, refusing to accept Sahara’s readiness to deposit Rs 5,126 crore in compliance with the August 31 judgment.
The “music” which the bench referred to is real, as an application seeking initiation of contempt proceedings is pending before a bench of Justices K S Radhakrishnan and J S Khehar, which had taken a strong view of the Sahara companies trying to step around the August 31 judgment.
When Sebi counsel Arvind Datar informed the court on Monday that the market regulator had filed a contempt petition against the companies, the bench said it was more interested in ensuring return of the money to ordinary investors.
IN THE APEX COURT'S FIRING LINE
Senior advocate Gopal Subramaniam attempted to give reasons before the bench headed by the CJI-—from contesting the refundable amount to lapses on part of the market regulator in helping the two Sahara companies to complying with the directions in the August 31 judgment. Unimpressed, the bench indicated that it had seen through the gameplan and decided to do some plain talking. “Your intention is very shaky. Your every step is shaky, we can’t interpret our order according to your need,” it said.
The two Sahara group companies had moved the SC on November 30, the day the three-month deadline ended for refund of Rs 24,000 crore to investors through market regulator Sebi. They came with drafts for Rs 5,126 crore to attempt to prove their bona fides as managers of the investors’ money.
Sahara had contested Sebi’s estimation of the refundable amount as Rs 24,000 crore, while arguing that the regulator was neither accepting the documented investor information being provided by the companies—Sahara India Real Estate Corporation Ltd (SIRECL) and Sahara Housing Investment Corporation Ltd (SHICL) —nor accepting money being offered as refund to investors. Sahara’s rush to the apex court was triggered by Sebi’s decision to write to 88 banks seeking account details of the companies and writing to secretaries of two states inquiring about the firms’ movable and immovable assets.
On October 19, the Supreme Court had pulled up Sebi for going soft on the Sahara companies by failing to act after the firms did not implement the court’s August 31 order directing them to furnish all documents relating to collection of funds of over Rs 24,000 crore from nearly 3 crore investors.
The court had said that Sebi and the Sahara firms could not “mutually agree to violate the judgment” when Subramaniam told the bench of Justices Radhakrishnan and Khehar that a schedule was being worked out. The bench said that on August 31, the court had given 10 days to SIRECL and SHICL to produce the documents. Thereafter, Sebi was to go ahead with its statutory duties and investigate the investments so that genuine investors got their money back.
When Sebi counsel Datar said the apex court’s order had not been complied with, the bench had asked, “What is the consequence of that? Whatever the two companies were to show they were to do that in 10 days. The time limit is clearly prescribed. If they don’t, then take appropriate action.
“For so many years, they did not furnish anything. We gave 10 more days. If they do not comply with it, take action as per law. It is the duty of Sebi to comply with the judgment also. We are not here to hold the hands of Sebi and tell what it should do as per its statutory mandate and duty.”
Courtesy:
Dhananjay Mahapatra TNN
http://epaper.timesofindia.com/Default/Scripting/ArticleWin.asp?From=Archive&Source=Page&Skin=TOINEW&BaseHref=TOIM/2012/12/04&PageLabel=1&EntityId=Ar00100&ViewMode=HTML
New Delhi: The Supreme Court on Monday gave two Sahara companies 24 hours to decide whether they were complying with the apex court’s three-month-old directive to refund Rs 24,000 crore to nearly three crore investors through market regulator Sebi or face the consequences.
“Tell us by tomorrow (Tuesday) whether you are ready to pay up or face the music,” a bench of Chief Justice Altamas Kabir and Justices S S Nijjar and J Chelameswar said, refusing to accept Sahara’s readiness to deposit Rs 5,126 crore in compliance with the August 31 judgment.
The “music” which the bench referred to is real, as an application seeking initiation of contempt proceedings is pending before a bench of Justices K S Radhakrishnan and J S Khehar, which had taken a strong view of the Sahara companies trying to step around the August 31 judgment.
When Sebi counsel Arvind Datar informed the court on Monday that the market regulator had filed a contempt petition against the companies, the bench said it was more interested in ensuring return of the money to ordinary investors.
IN THE APEX COURT'S FIRING LINE
- Aug 31 SC gives Sahara companies SIRECL and SHICL 10 days to furnish all documents relating to collection of over Rs 24,000 crore from nearly 3 crore investors
- Oct 19 Supreme Court pulls up Sebi for going soft on court order
- Nov 30 Sahara moves SC as 3-month deadline for refund of deposits ends and Sebi approaches 88 banks for depositors’ details and seeks details of firms’ assets from 2 states; Sahara offers to deposit Rs 5,126 crore
- Dec 3 SC rejects deposit, takes Sahara to task SC says Sahara’s intention ‘very shaky’
Senior advocate Gopal Subramaniam attempted to give reasons before the bench headed by the CJI-—from contesting the refundable amount to lapses on part of the market regulator in helping the two Sahara companies to complying with the directions in the August 31 judgment. Unimpressed, the bench indicated that it had seen through the gameplan and decided to do some plain talking. “Your intention is very shaky. Your every step is shaky, we can’t interpret our order according to your need,” it said.
The two Sahara group companies had moved the SC on November 30, the day the three-month deadline ended for refund of Rs 24,000 crore to investors through market regulator Sebi. They came with drafts for Rs 5,126 crore to attempt to prove their bona fides as managers of the investors’ money.
Sahara had contested Sebi’s estimation of the refundable amount as Rs 24,000 crore, while arguing that the regulator was neither accepting the documented investor information being provided by the companies—Sahara India Real Estate Corporation Ltd (SIRECL) and Sahara Housing Investment Corporation Ltd (SHICL) —nor accepting money being offered as refund to investors. Sahara’s rush to the apex court was triggered by Sebi’s decision to write to 88 banks seeking account details of the companies and writing to secretaries of two states inquiring about the firms’ movable and immovable assets.
On October 19, the Supreme Court had pulled up Sebi for going soft on the Sahara companies by failing to act after the firms did not implement the court’s August 31 order directing them to furnish all documents relating to collection of funds of over Rs 24,000 crore from nearly 3 crore investors.
The court had said that Sebi and the Sahara firms could not “mutually agree to violate the judgment” when Subramaniam told the bench of Justices Radhakrishnan and Khehar that a schedule was being worked out. The bench said that on August 31, the court had given 10 days to SIRECL and SHICL to produce the documents. Thereafter, Sebi was to go ahead with its statutory duties and investigate the investments so that genuine investors got their money back.
When Sebi counsel Datar said the apex court’s order had not been complied with, the bench had asked, “What is the consequence of that? Whatever the two companies were to show they were to do that in 10 days. The time limit is clearly prescribed. If they don’t, then take appropriate action.
“For so many years, they did not furnish anything. We gave 10 more days. If they do not comply with it, take action as per law. It is the duty of Sebi to comply with the judgment also. We are not here to hold the hands of Sebi and tell what it should do as per its statutory mandate and duty.”
Courtesy:
Dhananjay Mahapatra TNN
http://epaper.timesofindia.com/Default/Scripting/ArticleWin.asp?From=Archive&Source=Page&Skin=TOINEW&BaseHref=TOIM/2012/12/04&PageLabel=1&EntityId=Ar00100&ViewMode=HTML
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