Showing posts with label Sahara Group. Show all posts
Showing posts with label Sahara Group. Show all posts
Friday, February 28, 2014
Tuesday, December 10, 2013
सहारा चीफ और दो अन्य को नोटिस
सुप्रीम कोर्ट ने 2 जी मामले की जांच में कथित तौर पर दखल देने के मामले में सहारा चीफ सुब्रत राय और दो अन्य के खिलाफ दाखिल याचिका पर सुनवाई करने का फैसला किया है। कोर्ट ने इस मामले में सुब्रत राय और दो अन्य से पूछा है कि क्यों न उनके खिलाफ इस मामले में अवमानना की प्रक्रिया शुरू की जाए। सुप्रीम कोर्ट ने नोटिस जारी कर 6 हफ्ते में जवाब दाखिल करने को कहा है।
क्या है मामला?
इस मामले में इंफोर्समेंट डायरेक्टरेट (ईडी) के जांच अधिकारी राजेश्वर सिंह की ओर से अर्जी दाखिल की गई है। 2जी मामले में ईडी की जांच भी चल रही है। ईडी के जांच अधिकारी ने आरोप लगाया है कि इस मामले में टीवी चैनल के दो अधिकारियों ने उन्हें धमकी दी और ब्लैकमेल करने की कोशिश की थी।
याचिका के मुताबिक, प्रतिवादियों ने जांच में दखल देने की कोशिश की है और इस कारण इनके खिलाफ अवमानना की कार्रवाई होनी चाहिए। इस मामले में सुप्रीम कोर्ट ने 6 मई 2011 को टिप्पणी की थी कि पहली नजर में यह विचार आता है कि ईडी अधिकारी द्वारा की जा रही जांच में दखल देने की कोशिश की जा रही है। इस मामले में ईडी के जांच अधिकारी से टीवी चैनल द्वारा 25 सवाल पूछे गए थे। अदालत ने उस वक्त आदेश दिया था कि टीवी चैनल ईडी के जांच अधिकारी द्वारा दिए गए जवाबों को नहीं दिखा पाएंगे।
साभार:
Dec 10, 2013, 09.00AM IST
प्रमुख संवाददाता, नई दिल्ली
http://navbharattimes.indiatimes.com/india/national-india/notice-to-sahara-chief-and-two-others/articleshow/27145779.cms
क्या है मामला?
इस मामले में इंफोर्समेंट डायरेक्टरेट (ईडी) के जांच अधिकारी राजेश्वर सिंह की ओर से अर्जी दाखिल की गई है। 2जी मामले में ईडी की जांच भी चल रही है। ईडी के जांच अधिकारी ने आरोप लगाया है कि इस मामले में टीवी चैनल के दो अधिकारियों ने उन्हें धमकी दी और ब्लैकमेल करने की कोशिश की थी।
याचिका के मुताबिक, प्रतिवादियों ने जांच में दखल देने की कोशिश की है और इस कारण इनके खिलाफ अवमानना की कार्रवाई होनी चाहिए। इस मामले में सुप्रीम कोर्ट ने 6 मई 2011 को टिप्पणी की थी कि पहली नजर में यह विचार आता है कि ईडी अधिकारी द्वारा की जा रही जांच में दखल देने की कोशिश की जा रही है। इस मामले में ईडी के जांच अधिकारी से टीवी चैनल द्वारा 25 सवाल पूछे गए थे। अदालत ने उस वक्त आदेश दिया था कि टीवी चैनल ईडी के जांच अधिकारी द्वारा दिए गए जवाबों को नहीं दिखा पाएंगे।
साभार:
Dec 10, 2013, 09.00AM IST
प्रमुख संवाददाता, नई दिल्ली
http://navbharattimes.indiatimes.com/india/national-india/notice-to-sahara-chief-and-two-others/articleshow/27145779.cms
Saturday, November 23, 2013
SC bans sale of Sahara assets, bars Roy from going abroad
“We are prima facie satisfied that our order dated October 28, 2013, has not been complied with. The Sahara group companies shall not part with their properties,” a bench of Justices K S Radhakrishnan and J S Khehar said.
On October 28, the court had asked Sahara to submit the original title deeds of its assets worth Rs 20,000 crore and warned that failure to do so would result in orders restraining Roy and others from undertaking foreign travel. The court had asked for the title deeds as it had found that two Sahara companies, which were on August 31 last year directed to refund Rs 24,000 crore they had collected from investors in an irregular manner, had used every possible trick to avoid compliance.
The Sahara firms had paid up Rs 5,120 crore and said the total outstanding after that stood at only Rs 2,000-odd crore, the rest having already been paid back to the investors through field offices.
Can’t go by potential worth of plot: SC to Sahara
New Delhi: The Supreme Court, which has banned the Sahara group from selling its properties, had issued notices to two Sahara companies and the group’s boss Subrata Roy on a contempt petition filed by Sebi over the firms’ failure to refund Rs 24,000 crore collected from investors. While Sahara firms said the outstanding was only about Rs 2,000 crore, Sebi contested the claim and said the companies were not furnishing receipts for refunds they claimed to have made through their field offices.
During the hearing, senior advocate C A Sundaram told the bench that Sahara had given title deeds of two plots in Mumbai, one of which was a 106-acre parcel at Versova which was independently evaluated to be worth more than Rs 19,000 crore. But Sebi pointed out that the land value was calculated on the basis of its potential worth in 2020 when Sahara would build villas, golf courses and houses on the land. “The government record shows it is valued at Rs 108 crore. This was mainly because it had been declared a no-development zone,” senior advocate Arvind Datar argued for Sebi.
Though Sundaram tried to explain that the government had allowed development on the land, the bench said it was not going to be taken in by the potential worth of a plot at a future date. When it passed the order restraining the entire group from selling any of its properties, Sundaram said, “I did not understand. Is it because there is some problem with the title deed submitted by the Saharas?”
The bench said, “It is important for the Saharas to understand that till they comply with the (October 28) orders, they will not be heard. First comply with the orders. We will hear the contempt petition (by Sebi) later. We are restraining the entire group from alienating any immoveable property.” The court has posted the matter for further hearing on December 11 and said Sahara could seek vacation of the interim order once it complies with the October 28 order in letter and spirit.
‘LAND VALUE INFLATED’
- On Oct 28, SC asked Sahara to submit original title deeds of its assets worth 20,000 cr
- Two Sahara companies were told on Aug 31 last year to refund 24,000 crore irregularly collected from investors
- Sahara firms paid up 5,120 crore and said only 2,000-odd cr dues remained. Sebi contested the claim
- On Thursday, SC told Sahara gave title deeds of only two Mumbai plots; Sebi said land value of one was its potential worth in 2020 once a golf course, villas and houses were in place
Courtesy:
TIMES NEWS NETWORK
http://epaper.timesofindia.com/Default/Client.asp?Daily=TOIM&showST=true&login=default&pub=TOI&Enter=true&Skin=TOINEW
TIMES NEWS NETWORK
http://epaper.timesofindia.com/Default/Client.asp?Daily=TOIM&showST=true&login=default&pub=TOI&Enter=true&Skin=TOINEW
SC bars asset sale by Sahara, grounds Roy
Group's attempt to pass off green-zone land as Rs 19k-cr property displeases court
The Supreme Court on Thursday came down heavily on the Sahara group after it found that the group had not satisfactorily complied with the court’s October order to submit title deeds of properties worth over Rs 20,000 crore. The court imposed restrictions on the entire group from selling any immoveable or moveable property and barred its promoter Subrata Roy Sahara from leaving the country.
The order was passed in a contempt case filed by Securities and Exchange Board of India (Sebi) against two group companies Sahara India real Estate and Sahara Housing Invest, which allegedly have not complied with the Supreme Court’s August 2012 order to refund Rs 24,029 crore they raised by issuing optionally fully convertible debentures(OFCD). Sahara, which paid Rs 5,120 crore to Sebi, claims it has refunded the rest directly to investors.
The court adjourned the contempt proceedings to December 11.
Last month, the apex court had directed the group to file original title deeds of properties worth Rs 20,000 crore to cover its dues. It emerged that there were several flaws in the documents filed by the group.
“They have not complied with the order. They also know it. Everybody knows it,” Judge KS Radhakrishnan said after hearing the explanation of Sahara counsel CA Sundaram and Sebi’s counter arguments.
When Sundaram pleaded with the court to clarify which part of the order they have not complied with, Radhakrishnan said “This property is not worth Rs 19,000 crore.”
Judge JS Khehar told Sundaram, “It is not for you to understand. It is for Sahara to understand.”
Earlier, Sundaram had presented a detailed explanation of a valuation report of the 106-acre property in Versova done by Knight Frank. He presented an additional clarificatory report from the valuer explaining the methodology of valuation. He also presented an additional report by a second valuer.
Both entities had put the valuation of the property between Rs 18,800 crore – Rs 19,300 crore under internationally accepted valuation methods such as market approach method and income method.
The Sahara counsel also presented an additional clarificatory report from Knight Frank addressing certain objections raised by Sebi on Wednesday. He said the property was located in close to the upmarket Andheri-Lokhandwala complex in Mumbai and was within a kilometre’s distance from the proposed Metro terminus in Versova. The property also was said to enjoy a premium for its sea-view, being located between a river and the sea.
He said, quoting the valuers, that a residential complex developed by Oberoi just opposite the plot was selling flats at rates of Rs 36,000 per square feet. Windsor, another developer in the vicinity, was selling at Rs 30,000 to rs 35000 per square feet.
The valuers assumed an average rate of between Rs 27,000 to Rs 37,000 per square feet. This translated into a value of Rs 181-190 crore per acre, which in turn put the value of the entire plot.
But, all these arguments came to a naught, when Arvind Datar, the Sebi counsel pointed out that the entire property was situated in the middle of a “no-development zone” and that there was a clear direction by the Union Ministry of Environment and Forests barring any development. “It is in the green zone. Nothing can be built on it. The FSI allowed is 0.5 and that is why there was a plan to develop a golf course.”
Datar also pointed out that the land was part of a larger disputed area of 614 acres and Sahara has been engaged in legal disputes with the original owners B Jeejeebhoy Wakaria and associates since 2001.
Datar pointed out that the court direction was to submit “title deeds” and not reports of investment value. He submitted in view of the facts submitted that this property could not be considered worth more than Rs 118 crore.
Sundaram pointed that there was a notification issued by Maharashtra government in December 2012 allowing development of townships alongside transport corridor and this would allow Sahara to develop the township. But, neither Sebi nor the court was convinced.
Courtesy:
BS Reporter | New Delhi
November 22, 2013 Last Updated at 00:59 IST
http://www.business-standard.com/article/current-affairs/sc-bars-asset-sale-by-sahara-grounds-roy-113112100679_1.html
The Supreme Court on Thursday came down heavily on the Sahara group after it found that the group had not satisfactorily complied with the court’s October order to submit title deeds of properties worth over Rs 20,000 crore. The court imposed restrictions on the entire group from selling any immoveable or moveable property and barred its promoter Subrata Roy Sahara from leaving the country.
The order was passed in a contempt case filed by Securities and Exchange Board of India (Sebi) against two group companies Sahara India real Estate and Sahara Housing Invest, which allegedly have not complied with the Supreme Court’s August 2012 order to refund Rs 24,029 crore they raised by issuing optionally fully convertible debentures(OFCD). Sahara, which paid Rs 5,120 crore to Sebi, claims it has refunded the rest directly to investors.
The court adjourned the contempt proceedings to December 11.
Last month, the apex court had directed the group to file original title deeds of properties worth Rs 20,000 crore to cover its dues. It emerged that there were several flaws in the documents filed by the group.
“They have not complied with the order. They also know it. Everybody knows it,” Judge KS Radhakrishnan said after hearing the explanation of Sahara counsel CA Sundaram and Sebi’s counter arguments.
When Sundaram pleaded with the court to clarify which part of the order they have not complied with, Radhakrishnan said “This property is not worth Rs 19,000 crore.”
Judge JS Khehar told Sundaram, “It is not for you to understand. It is for Sahara to understand.”
Earlier, Sundaram had presented a detailed explanation of a valuation report of the 106-acre property in Versova done by Knight Frank. He presented an additional clarificatory report from the valuer explaining the methodology of valuation. He also presented an additional report by a second valuer.
Both entities had put the valuation of the property between Rs 18,800 crore – Rs 19,300 crore under internationally accepted valuation methods such as market approach method and income method.
The Sahara counsel also presented an additional clarificatory report from Knight Frank addressing certain objections raised by Sebi on Wednesday. He said the property was located in close to the upmarket Andheri-Lokhandwala complex in Mumbai and was within a kilometre’s distance from the proposed Metro terminus in Versova. The property also was said to enjoy a premium for its sea-view, being located between a river and the sea.
He said, quoting the valuers, that a residential complex developed by Oberoi just opposite the plot was selling flats at rates of Rs 36,000 per square feet. Windsor, another developer in the vicinity, was selling at Rs 30,000 to rs 35000 per square feet.
The valuers assumed an average rate of between Rs 27,000 to Rs 37,000 per square feet. This translated into a value of Rs 181-190 crore per acre, which in turn put the value of the entire plot.
But, all these arguments came to a naught, when Arvind Datar, the Sebi counsel pointed out that the entire property was situated in the middle of a “no-development zone” and that there was a clear direction by the Union Ministry of Environment and Forests barring any development. “It is in the green zone. Nothing can be built on it. The FSI allowed is 0.5 and that is why there was a plan to develop a golf course.”
Datar also pointed out that the land was part of a larger disputed area of 614 acres and Sahara has been engaged in legal disputes with the original owners B Jeejeebhoy Wakaria and associates since 2001.
Datar pointed out that the court direction was to submit “title deeds” and not reports of investment value. He submitted in view of the facts submitted that this property could not be considered worth more than Rs 118 crore.
Sundaram pointed that there was a notification issued by Maharashtra government in December 2012 allowing development of townships alongside transport corridor and this would allow Sahara to develop the township. But, neither Sebi nor the court was convinced.
Courtesy:
BS Reporter | New Delhi
November 22, 2013 Last Updated at 00:59 IST
http://www.business-standard.com/article/current-affairs/sc-bars-asset-sale-by-sahara-grounds-roy-113112100679_1.html
Friday, June 21, 2013
ED files laundering case against two Sahara firms
MUMBAI: In what may spell more trouble for the Sahara Group and its chief Subrata Roy, the Enforcement Directorate (ED) on Thursday registered cases under PMLA against two firms. A Sahara Group spokesperson refused to comment, saying he wasn’t aware of the development.
In what may spell more trouble for the Sahara Group and its chief Subrata Roy, the Enforcement Directorate (ED) in Mumbai on Thursday registered cases under Prevention of Money Laundering Act (PMLA) against two firms.
The ED will soon issue summons to Roy and three directors of the group asking them to remain present before the central agency to record their statements.
The ED registered two separate cases following complaint filed by market regulator Securities and Exchange Board of India (Sebi).
Sebi had accused Sahara India Real Estate Corporation Ltd (SIRECL) and Sahara Housing Investment Corporation Ltd (SHICL) of committing various illegalities while raising Rs24,000 crore from investors. The companies had raised the amount by issuance of certain bonds.
In February, Sebi ordered freezing of properties of the two firms and their top executives.
The action came following a Supreme Court (SC) directive ordering the firms to refund money with certain interest. The SC had also instructed Sebi to give refunds to genuine investors from the money the group had deposited with the market regulator.
ED officials said now that cases had been registered formal investigation wil begin against the two companies.
Sources said the agency wil verify information that crores of rupees have been transferred outside the country in the name of investment. It also wants to verify allegations that a large number of investors were dummy and that many shell companies had invested in the group.
According to sources, the ED is also investigating if money was routed to Mauritius in 2011.
Officials said the bank details submitted by the group also raises many questions on the investments.
A Sahara Group spokesperson refused to comment saying he wasn't aware of the development.
Courtesy:
21 Jun 2013, Hindustan Times (Mumbai)
http://paper.hindustantimes.com/epaper/viewer.aspx
In what may spell more trouble for the Sahara Group and its chief Subrata Roy, the Enforcement Directorate (ED) in Mumbai on Thursday registered cases under Prevention of Money Laundering Act (PMLA) against two firms.
The ED will soon issue summons to Roy and three directors of the group asking them to remain present before the central agency to record their statements.
The ED registered two separate cases following complaint filed by market regulator Securities and Exchange Board of India (Sebi).
Sebi had accused Sahara India Real Estate Corporation Ltd (SIRECL) and Sahara Housing Investment Corporation Ltd (SHICL) of committing various illegalities while raising Rs24,000 crore from investors. The companies had raised the amount by issuance of certain bonds.
In February, Sebi ordered freezing of properties of the two firms and their top executives.
The action came following a Supreme Court (SC) directive ordering the firms to refund money with certain interest. The SC had also instructed Sebi to give refunds to genuine investors from the money the group had deposited with the market regulator.
ED officials said now that cases had been registered formal investigation wil begin against the two companies.
Sources said the agency wil verify information that crores of rupees have been transferred outside the country in the name of investment. It also wants to verify allegations that a large number of investors were dummy and that many shell companies had invested in the group.
According to sources, the ED is also investigating if money was routed to Mauritius in 2011.
Officials said the bank details submitted by the group also raises many questions on the investments.
A Sahara Group spokesperson refused to comment saying he wasn't aware of the development.
Courtesy:
21 Jun 2013, Hindustan Times (Mumbai)
http://paper.hindustantimes.com/epaper/viewer.aspx
Sunday, May 5, 2013
Sahara Scam: SC gives 2 Sahara cos, Roy 1 week
Says Co Manipulating Court Proceedings, Needs To Reply To Sebi’s Contempt Plea
New Delhi: The Supreme Court on Monday gave two Sahara companies and group chief Subrata Roy a week to reply to a contempt petition filed by market regulator Sebi, which said they had disobeyed every single line of the August 31, 2012 judgment, ordering them to refund Rs 24,000 crore collected from investors irregularly.
The court on August 31 last year had directed Sahara India Real Estate Corporation (SIRECL) and Sahara Housing Investment Corporation (SHICL) to refund within three months Rs 24,029 crore collected between 2008 and 2011 from over 2.96 crore investors.
Complaining before a bench of Justices K S Radhakrishnan and J S Khehar about the companies’ non-cooperation and tactics to mislead the market regulator, Sebi’s counsel Arvind Datar said, “We have ordered attachment of properties, which were allegedly bought with the money collected from nearly three crore investors. Now, they say they have already sold off these properties and paid back the money to the investors. They are not giving the title deeds, which are needed for their auction. Our case is that they have not obeyed a single line of the August 31 judgment of the Supreme Court. They must respect some order somewhere.”
The bench took a strong view of it and said, “Sebi need not go after them to give details of the investors. They have to deposit the money and then substantiate the identity of each investor. Whatever amount the companies fail to account for, that much will be given to the government.” Taking exception to repeated petitions before Security Appellate Tribunal and Allahabad High Court by the Sahara firms, the bench said, “They (SIRECL and SHICL) will have to pay. Identification of investors is their problem. If details of investors are given, it is well and good. Otherwise, they will take you round every bend for years and it will be a never ending exercise. You refund the money to the government if they do not give details of investors.”
It added, “How did the matter go from Sebi to the Allahabad High Court? You are manipulating court proceedings. There are directors who are common to the companies and who are aware of our judgment. How did one of you go to the high court? It is shocking.”
Advocates Gaurav Kejriwal and Keshav Mohan said the two companies had provided 127 truckloads of documents containing details of each and every investor and the mode of refund made to them. But the court questioned why they made the refunds on their own when it was directed to be done through Sebi.
Sebi sought a direction from the court to Sahara group chief Subrata Roy to deposit his passport but it was vehemently opposed by his counsel C A Sundaram. The bench said, “We cannot make the Sebi application infructuous. Either you make a statement on behalf of your client that he will not leave the country otherwise we will restrain you from going abroad.”
However, Sundaram assured the court that his client would within a week file reply to Sebi’s petition seeking initiation of contempt proceedings against the Sahara firms. The court posted the matter for further hearing on May 2.
On December 5, the court had relaxed the November 31 deadline for the two companies after they deposited Rs 5,120 crore with Sebi and promised to abide by the order directing them to deposit Rs 10,000 crore by January first week and the balance by February first week.
The court on August 31 last year had directed Sahara India Real Estate Corporation (SIRECL) and Sahara Housing Investment Corporation (SHICL) to refund within three months Rs 24,029 crore collected between 2008 and 2011 from over 2.96 crore investors.
Complaining before a bench of Justices K S Radhakrishnan and J S Khehar about the companies’ non-cooperation and tactics to mislead the market regulator, Sebi’s counsel Arvind Datar said, “We have ordered attachment of properties, which were allegedly bought with the money collected from nearly three crore investors. Now, they say they have already sold off these properties and paid back the money to the investors. They are not giving the title deeds, which are needed for their auction. Our case is that they have not obeyed a single line of the August 31 judgment of the Supreme Court. They must respect some order somewhere.”
The bench took a strong view of it and said, “Sebi need not go after them to give details of the investors. They have to deposit the money and then substantiate the identity of each investor. Whatever amount the companies fail to account for, that much will be given to the government.” Taking exception to repeated petitions before Security Appellate Tribunal and Allahabad High Court by the Sahara firms, the bench said, “They (SIRECL and SHICL) will have to pay. Identification of investors is their problem. If details of investors are given, it is well and good. Otherwise, they will take you round every bend for years and it will be a never ending exercise. You refund the money to the government if they do not give details of investors.”
It added, “How did the matter go from Sebi to the Allahabad High Court? You are manipulating court proceedings. There are directors who are common to the companies and who are aware of our judgment. How did one of you go to the high court? It is shocking.”
Advocates Gaurav Kejriwal and Keshav Mohan said the two companies had provided 127 truckloads of documents containing details of each and every investor and the mode of refund made to them. But the court questioned why they made the refunds on their own when it was directed to be done through Sebi.
Sebi sought a direction from the court to Sahara group chief Subrata Roy to deposit his passport but it was vehemently opposed by his counsel C A Sundaram. The bench said, “We cannot make the Sebi application infructuous. Either you make a statement on behalf of your client that he will not leave the country otherwise we will restrain you from going abroad.”
However, Sundaram assured the court that his client would within a week file reply to Sebi’s petition seeking initiation of contempt proceedings against the Sahara firms. The court posted the matter for further hearing on May 2.
On December 5, the court had relaxed the November 31 deadline for the two companies after they deposited Rs 5,120 crore with Sebi and promised to abide by the order directing them to deposit Rs 10,000 crore by January first week and the balance by February first week.
ROW OVER REFUND
The court on August 31 last year had directed two Subrara Roy-led Sahara group companies to refund within three months Rs 24,029 crore collected between 2008 and 2011 from over 2.96 crore investors
Sahara’s counsel told the court that his client would within a week file reply to Sebi’s petition seeking initiation of contempt proceedings against the Sahara fi rms
Courtesy:
Dhananjay Mahapatra TNN
http://epaper.timesofindia.com/Default/Scripting/ArticleWin.asp?From=Archive&Source=Page&Skin=TOINEW&BaseHref=TOIM/2013/04/23&PageLabel=21&EntityId=Ar02001&ViewMode=HTML
Sahara Scam: Supreme Court pulls up Sahara for ‘manipulating courts’
Censuring Sahara Group and its promoter Subrata Roy for "manipulating" courts instead of "remedying their mistakes", the Supreme Court on Monday asked why Roy and two other directors should not be detained for their failure to refund Rs 24,000 crore to investors.
A bench led by Justice KS Radhakrishnan also pulled up the group for not responding to its contempt notice to show cause why action should not be initiated for their alleged breach of orders on refunding the money to investors and depositing all required documents with Sebi for verification of investors and payments.
"Are you supposed to sit and relax when notice is issued to you? We think you are trying to make the case an endless exercise," said the bench, giving Sahara a week's time to file replies, both to Sebi's contempt petition and another plea seeking their detention. Sebi has sought detention of Roy and the two directors, Ashok Roy Choudhary and Ravi Shankar Dubey, in view of their "open, continued and consistent defiance" of its directive on refund of money.
In August 2011, the court had asked two Sahara firms — Sahara India Real Estate Corporation (SIRECL) and Sahara Housing Investment Corporation (SHICL) — to refund Rs 24,000 crore raised from investors through "illegally" raised optionally fully convertible debentures (OFCDs) by November 30 last year.
The bench said it was "very strange" that Sahara had been seeking extension of time and other relief from various forums although the SC order had attained finality. "What has been happening? You are filing appeals after appeals. Why did you move the Allahabad High Court against Sebi's attachment order? How can you go the HC? You are manipulating courts. Attempts are made to overreach orders of this court. We are surprised about what you are doing. We will take it seriously," cautioned the bench.
The bench also discarded an argument by Sahara's counsel that they were compelled to approach HC and SAT since Sebi had gone beyond the scope of the SC order by passing certain orders.
Courtesy:
Utkarsh Anand : New Delhi, Tue Apr 23 2013, 00:48 hrs
http://www.indianexpress.com/news/supreme-court-pulls-up-sahara-for--manipulating-courts-/1106231/0
A bench led by Justice KS Radhakrishnan also pulled up the group for not responding to its contempt notice to show cause why action should not be initiated for their alleged breach of orders on refunding the money to investors and depositing all required documents with Sebi for verification of investors and payments.
"Are you supposed to sit and relax when notice is issued to you? We think you are trying to make the case an endless exercise," said the bench, giving Sahara a week's time to file replies, both to Sebi's contempt petition and another plea seeking their detention. Sebi has sought detention of Roy and the two directors, Ashok Roy Choudhary and Ravi Shankar Dubey, in view of their "open, continued and consistent defiance" of its directive on refund of money.
In August 2011, the court had asked two Sahara firms — Sahara India Real Estate Corporation (SIRECL) and Sahara Housing Investment Corporation (SHICL) — to refund Rs 24,000 crore raised from investors through "illegally" raised optionally fully convertible debentures (OFCDs) by November 30 last year.
The bench said it was "very strange" that Sahara had been seeking extension of time and other relief from various forums although the SC order had attained finality. "What has been happening? You are filing appeals after appeals. Why did you move the Allahabad High Court against Sebi's attachment order? How can you go the HC? You are manipulating courts. Attempts are made to overreach orders of this court. We are surprised about what you are doing. We will take it seriously," cautioned the bench.
The bench also discarded an argument by Sahara's counsel that they were compelled to approach HC and SAT since Sebi had gone beyond the scope of the SC order by passing certain orders.
Courtesy:
Utkarsh Anand : New Delhi, Tue Apr 23 2013, 00:48 hrs
http://www.indianexpress.com/news/supreme-court-pulls-up-sahara-for--manipulating-courts-/1106231/0
Thursday, April 25, 2013
BANKER’S TRUST REALTIME : Four lessons from Sebi-Sahara spat
What should Sebi do to get to the bottom of Sahara case?
India’s apex court has once again expressed its unhappiness with Subrata Roy’s Sahara India Pariwar, a Lucknow-based conglomerate that has at least 4,100 establishments in its fold and Rs.1.18 trillion in assets spread across real estate, infrastructure, media, hospitality, sports and finance. “You are manipulating courts,” a Supreme Court bench, consisting of judges K.S. Radhakrishnan and J.S. Khehar, said on Monday in reference to the group approaching different forums for relief in a legal battle with the stock market regulator. The bench wanted to know why Sahara was refunding money directly to investors and not routing it through the Securities and Exchange Board of India (Sebi), as has been directed by the court.
The group claims that Sahara India Real Estate Corp. Ltd (SIRECL) and Sahara Housing Investment Corp. Ltd (SHICL) have already paid back some Rs.19,000 crore to investors who purchased securities sold by the two firms. Instead of providing a list of people who have received their refunds, the group has been filing appeals in various courts. Sebi wants a few directors of these two companies, including Roy, detained for delaying the refunds.
In August 2012, Radhakrishnan and Khehar asked Sahara to pay back Rs.24,000 crore and directed a retired Supreme Court judge, B.N. Agarwal, to oversee the process. Since then, Sebi has been struggling to get the investors’ money back.
What should it do to get to the bottom of the case which, according to Sebi counsel Arvind Datar, keeps getting “curiouser and curiouser”?
First, it can ask Sahara to provide the list of the top 1% or 5% of investors in the bonds sold by SIRECL and SHICL. Typically, the top 1-5% “creamy layer” of investors account for 20-25% of the money invested. This will make life easier for Sebi and also Sahara as it won’t have to send truckloads of documents to the regulator.
Second, Sebi can also look at the concentration of the investor base. If it can locate five geographical pockets, it would become easier to get a fix on the investors as Nandan Nilekani’s Aadhaar unique identity number project can do the rest of the job.
Finally, Sebi could ask Roy from which banks he withdrew the money to pay investors. He may have been paying cash but certainly he cannot keep Rs.19,000 crore in gunny bags at home or in the Sahara offices. In other words, had he indeed paid Rs.19,000 crore to the bond investors, he would have withdrawn that money from the banking system.
Sebi has been following the directives of the Supreme Court diligently but it lacks the acumen to deal with Roy.
How could Roy find himself in such a situation? The Sahara chief refused to give information to Sebi and thought he could get away with it, but now the apex court is seeking the same details from him. Had he provided the information to Sebi, he would not have found himself in such a mess.
It may or may not be the end game for Roy but many lessons can be learnt from the Sebi-Sahara spat.
First, it’s a vindication of the independence of the judiciary. In this case, justice may have been delayed but definitely not denied. The Supreme Court has demonstrated that politicians cannot shield a businessman for ever.
Second, it’s a lesson for the Indian financial system on its loopholes and how any smart entrepreneur can use regulatory arbitraging to his advantage.
Third, if indeed the two Sahara group firms had 30 million investors in their bonds, the Indian financial system can learn lessons in financial inclusion from Roy. The total number of demat accounts in India is about 20 million.
Finally, if Sahara fails to furnish the correct list of investors, the money for which there are no takers will flow into the government’s consolidated fund for investor education. That will deal a blow to Roy’s business model.
Note: Sahara has filed a defamation case in a Patna court against Mint’s editor and some reporters over the newspaper’s coverage of the company’s disputes with Sebi. Mint is contesting the case.
Banker’s Trust Realtime is a frequent blog by Tamal Bandyopadhyay, who writes a popular weekly column Banker’s Trust.
Courtesy:
Tamal Bandyopadhyay
First Published: Tue, Apr 23 2013. 01 34 PM IST
Updated: Tue, Apr 23 2013. 11 04 PM IST
http://www.livemint.com/Opinion/XYjUISOXNEpopbydhzSOpN/BANKERS-TRUST-REALTIME--Four-lessons-from-SebiSahara-spat.html
India’s apex court has once again expressed its unhappiness with Subrata Roy’s Sahara India Pariwar, a Lucknow-based conglomerate that has at least 4,100 establishments in its fold and Rs.1.18 trillion in assets spread across real estate, infrastructure, media, hospitality, sports and finance. “You are manipulating courts,” a Supreme Court bench, consisting of judges K.S. Radhakrishnan and J.S. Khehar, said on Monday in reference to the group approaching different forums for relief in a legal battle with the stock market regulator. The bench wanted to know why Sahara was refunding money directly to investors and not routing it through the Securities and Exchange Board of India (Sebi), as has been directed by the court.
The group claims that Sahara India Real Estate Corp. Ltd (SIRECL) and Sahara Housing Investment Corp. Ltd (SHICL) have already paid back some Rs.19,000 crore to investors who purchased securities sold by the two firms. Instead of providing a list of people who have received their refunds, the group has been filing appeals in various courts. Sebi wants a few directors of these two companies, including Roy, detained for delaying the refunds.
In August 2012, Radhakrishnan and Khehar asked Sahara to pay back Rs.24,000 crore and directed a retired Supreme Court judge, B.N. Agarwal, to oversee the process. Since then, Sebi has been struggling to get the investors’ money back.
What should it do to get to the bottom of the case which, according to Sebi counsel Arvind Datar, keeps getting “curiouser and curiouser”?
First, it can ask Sahara to provide the list of the top 1% or 5% of investors in the bonds sold by SIRECL and SHICL. Typically, the top 1-5% “creamy layer” of investors account for 20-25% of the money invested. This will make life easier for Sebi and also Sahara as it won’t have to send truckloads of documents to the regulator.
Second, Sebi can also look at the concentration of the investor base. If it can locate five geographical pockets, it would become easier to get a fix on the investors as Nandan Nilekani’s Aadhaar unique identity number project can do the rest of the job.
Finally, Sebi could ask Roy from which banks he withdrew the money to pay investors. He may have been paying cash but certainly he cannot keep Rs.19,000 crore in gunny bags at home or in the Sahara offices. In other words, had he indeed paid Rs.19,000 crore to the bond investors, he would have withdrawn that money from the banking system.
Sebi has been following the directives of the Supreme Court diligently but it lacks the acumen to deal with Roy.
How could Roy find himself in such a situation? The Sahara chief refused to give information to Sebi and thought he could get away with it, but now the apex court is seeking the same details from him. Had he provided the information to Sebi, he would not have found himself in such a mess.
It may or may not be the end game for Roy but many lessons can be learnt from the Sebi-Sahara spat.
First, it’s a vindication of the independence of the judiciary. In this case, justice may have been delayed but definitely not denied. The Supreme Court has demonstrated that politicians cannot shield a businessman for ever.
Second, it’s a lesson for the Indian financial system on its loopholes and how any smart entrepreneur can use regulatory arbitraging to his advantage.
Third, if indeed the two Sahara group firms had 30 million investors in their bonds, the Indian financial system can learn lessons in financial inclusion from Roy. The total number of demat accounts in India is about 20 million.
Finally, if Sahara fails to furnish the correct list of investors, the money for which there are no takers will flow into the government’s consolidated fund for investor education. That will deal a blow to Roy’s business model.
Note: Sahara has filed a defamation case in a Patna court against Mint’s editor and some reporters over the newspaper’s coverage of the company’s disputes with Sebi. Mint is contesting the case.
Banker’s Trust Realtime is a frequent blog by Tamal Bandyopadhyay, who writes a popular weekly column Banker’s Trust.
Courtesy:
Tamal Bandyopadhyay
First Published: Tue, Apr 23 2013. 01 34 PM IST
Updated: Tue, Apr 23 2013. 11 04 PM IST
http://www.livemint.com/Opinion/XYjUISOXNEpopbydhzSOpN/BANKERS-TRUST-REALTIME--Four-lessons-from-SebiSahara-spat.html
Wednesday, April 10, 2013
Sahara cos stocks rebound after early losses
The two listed companies from the Sahara stable don’t add up to much in value compared to the huge financial muscle that the group enjoys. Sahara One and Sahara HousingFina had a combined market capitalization of Rs 233 crore (based on their closing prices on BSE on Thursday).
The value of promoters’ stake in these companies stood at Rs 173.3 crore. “Listed companies from the Sahara group have an insignificant presence in the market. So, there would not be much in terms of material impact,” says Kishor P Ostwal, managing director, CNI Research, an equities research provider. Revenues and profits from the listed companies are also miniscule compared to the size of the Sahara group. Sahara One reported revenues of Rs 45.57 crore and a net profit of Rs 1.45 crore in October-December. It had revenues of only Rs 110 crore in 2011-12.
Sahara HousingFina had revenues of a mere Rs. 4.87 crore in October-December and net profit of just Rs 49.35 lakh. It had revenues of only Rs 19.77 crore in 2011-12. Though there have been rumours of a sell-out in a few equity schemes managed by the Sahara mutual fund (MF), its assets under management (AUM) are too small to offer any succour to the parent group.
COURTESY:
M Allirajan TNN
http://epaper.timesofindia.com/Default/Scripting/ArticleWin.asp?From=Archive&Source=Page&Skin=TOINEW&BaseHref=TOIM/2013/02/15&PageLabel=25&EntityId=Ar02507&ViewMode=HTML
Sahara Group Realty investors left in lurch
The chances of completion of the projects that these two companies had undertaken are not very high since SEBI has attached the properties, said a real estate expert on condition of anonymity. The Sahara group had sold a number of projects in cities like Bangalore, Chennai and Mohali. Customers who invested in these projects are going to be adversely impacted. The group is said to have a land bank of nearly 27,000 acres across the country.
Another real estate expert said that since most of the recoverable investment of the group is in real estate Sebi will sell them to repay outstanding dues of bondholders. Only after repaying bondholders, the money will be used for investors in the real estate projects. This process will take a long time to complete and investors will suffer.
Over a period of time, the group has created huge assets in the real estate sector. So far, the group has launched housing projects in 19 cities. During June 2012, the group had launched 10 integrated township projects in 10 cities on over 900 acres of land. The towns in which the group had launched projects included Pune, Aurangabad, Jodhpur, Gwalior, Bareilly, Solapur, Porbandar, Katni, Kashipur and Cuttack. Sahara has also launched seven projects, which the group claimed, are already under construction, in Lucknow, Jaipur, Indore, Nagpur, Ahmedabad, Satna and Coimbatore.
The group is also implementing a mega city premium project called Ambi Valley near Pune. A large number of investors are understood to have invested in these projects. The group had also launched a new affordable housing brand called Sahara Swapna City that is to be built on smaller land parcels across 360 cities, the group claimed. An investment of Rs 500-600 crore would be required for each Sahara City Homes project, while the affordable homes project will require nearly Rs 100-125 crore, which are normally financed through customer advances and bank funding.
No loan exposure to Sahara: SBI
Mumbai: State Bank of India has said that it holds around Rs 800 crore of Sahara group in the form of deposits but does not have any loan exposure. The bank said that its operations would not be impacted if the deposits were to be withdrawn. Other public sector banks also said that they do not have any loan exposure to the group. TNN
COURTESY:
Prabhakar Sinha TNN
http://epaper.timesofindia.com/Default/Scripting/ArticleWin.asp?From=Archive&Source=Page&Skin=TOINEW&BaseHref=TOIM/2013/02/15&PageLabel=25&EntityId=Ar02505&ViewMode=HTML
Sahara Group case: Subrata Roy summoned by Sebi
In the high-profile refund case involving an estimated Rs 24,000 crore payment to over three crore investors, Sahara group's chief Subrata Roy and other top executives have been summoned for personal appearance tomorrow before the market regulator Sebi.
The summons for personal appearance of Roy and three other directors of two Sahara firms were issued by Sebi to examine them for ascertaining details of their personal assets, as also the investments and assets of the companies, to move ahead with sale of immovable assets for realisation of money to be refunded to the investors.
While the group officials did not comment on whether Roy and others would appear before Sebi tomorrow, Sebi had ordered their personal appearance in an order dated March 26.
In the same order, the two Sahara firms and their four top executives were also asked to provide details of their assets and investments to the market regulator by April 8.
It could not be ascertained whether these details have been furnished before Sebi as per the orders.
Roy and others (Ashok Roy Choudhary, Ravi Shankar Dubey and Vandana Bhargava) have been ordered to appear before Sebi's whole-time member Prashant Saran.
If these persons fail to appear before Sebi as ordered, the regulator has said it would ex parte settle the terms of proclamation of sale of their and the companies' assets.
The group on various occasions, including through newspaper advertisements, has accused Sebi and its top officials of not providing an opportunity to meet Sahara chief Subrata Roy and others for presenting their points of view.
Incidentally, the Securities Appellate Tribunal (SAT) is scheduled to hear later this week, on April 13, the appeals filed by Subrata Roy and others against a previous Sebi order for attachment of their bank accounts, assets and investments.
These properties include those related to the group's Aambey Valley resort town near Pune, other real estate assets in Delhi, Mumbai and at other places across the country, shares, mutual funds and various other investments.
During their personal appearance tomorrow, Roy and other three top executives have also been asked to produce original title deeds of all assets and investments of the two firms, Sahara India Real Estate Corp Ltd (SIRECL) and Sahara Housing Investment Corp Ltd (SHICL).
Besides, they have been asked to furnish details of their bank accounts (in India and abroad), and the complete books of accounts along with income tax returns and wealth tax returns filed by the two companies from fiscal 2007-08 onwards.
Later this month, the Supreme Court would also hear a plea by Sebi seeking orders for Roy's arrest and barring him from leaving the country.
The two Sahara firms, SIRECL and SHCIL, have been asked by the Supreme Court to refund over Rs 24,000 crore to their bondholders within three months.
In this apex court order dated August 31, 2012, Sebi was asked to facilitate the refund after verifying genuineness of the investors.
Later on December 5, 2012, the court gave additional time to Saharas and asked it to make an immediate payment of Rs 5,120 crore, followed by Rs 10,000 crore by first week of January and the remainder by first week of February.
After the group failed to make the payments as per the orders, Sebi ordered freezing of accounts and attachment of assets. Sahara claims that it has already repaid most of the investors directly and its total outstanding refund liability was less than Rs 5,120 crore, which it has given to Sebi.
Sebi had passed the attachment orders within days of the Supreme Court saying that the market regulator was free to freeze accounts and attach properties if Sahara group firms were not depositing the money with it for refund to investors.
In two separate attachment orders against SHICL and SIRECL, together running into 160 pages, Sebi had said that the two firms had raised Rs 6,380 crore and Rs 19,400 crore respectively from bondholders and "various illegalities" were committed in raising of these funds.
In these orders, dated February 13, 2013, Sebi had also asked the two firms and their four top executives to provide details of their movable and immovable properties, investments, among others, within 21 days.
However, Sebi last month said that these orders were not complied with and therefore it had to pass another order to move ahead with sale of assets for realisation of funds required to be returned to the investors.
Courtesy:
PTI: Mumbai, Apr 09 2013, 22:10 IST
http://www.financialexpress.com/news/sahara-group-case-subrata-roy-summoned-by-sebi-tomorrow/1099934/0
The summons for personal appearance of Roy and three other directors of two Sahara firms were issued by Sebi to examine them for ascertaining details of their personal assets, as also the investments and assets of the companies, to move ahead with sale of immovable assets for realisation of money to be refunded to the investors.
In the same order, the two Sahara firms and their four top executives were also asked to provide details of their assets and investments to the market regulator by April 8.
It could not be ascertained whether these details have been furnished before Sebi as per the orders.
Roy and others (Ashok Roy Choudhary, Ravi Shankar Dubey and Vandana Bhargava) have been ordered to appear before Sebi's whole-time member Prashant Saran.
If these persons fail to appear before Sebi as ordered, the regulator has said it would ex parte settle the terms of proclamation of sale of their and the companies' assets.
Incidentally, the Securities Appellate Tribunal (SAT) is scheduled to hear later this week, on April 13, the appeals filed by Subrata Roy and others against a previous Sebi order for attachment of their bank accounts, assets and investments.
These properties include those related to the group's Aambey Valley resort town near Pune, other real estate assets in Delhi, Mumbai and at other places across the country, shares, mutual funds and various other investments.
During their personal appearance tomorrow, Roy and other three top executives have also been asked to produce original title deeds of all assets and investments of the two firms, Sahara India Real Estate Corp Ltd (SIRECL) and Sahara Housing Investment Corp Ltd (SHICL).
Besides, they have been asked to furnish details of their bank accounts (in India and abroad), and the complete books of accounts along with income tax returns and wealth tax returns filed by the two companies from fiscal 2007-08 onwards.
Later this month, the Supreme Court would also hear a plea by Sebi seeking orders for Roy's arrest and barring him from leaving the country.
The two Sahara firms, SIRECL and SHCIL, have been asked by the Supreme Court to refund over Rs 24,000 crore to their bondholders within three months.
In this apex court order dated August 31, 2012, Sebi was asked to facilitate the refund after verifying genuineness of the investors.
Later on December 5, 2012, the court gave additional time to Saharas and asked it to make an immediate payment of Rs 5,120 crore, followed by Rs 10,000 crore by first week of January and the remainder by first week of February.
Sebi had passed the attachment orders within days of the Supreme Court saying that the market regulator was free to freeze accounts and attach properties if Sahara group firms were not depositing the money with it for refund to investors.
In two separate attachment orders against SHICL and SIRECL, together running into 160 pages, Sebi had said that the two firms had raised Rs 6,380 crore and Rs 19,400 crore respectively from bondholders and "various illegalities" were committed in raising of these funds.
In these orders, dated February 13, 2013, Sebi had also asked the two firms and their four top executives to provide details of their movable and immovable properties, investments, among others, within 21 days.
However, Sebi last month said that these orders were not complied with and therefore it had to pass another order to move ahead with sale of assets for realisation of funds required to be returned to the investors.
Courtesy:
PTI: Mumbai, Apr 09 2013, 22:10 IST
http://www.financialexpress.com/news/sahara-group-case-subrata-roy-summoned-by-sebi-tomorrow/1099934/0
Monday, April 8, 2013
सहारा मामले में सेबी का खर्च 55 करोड़ रुपये पर पहुंचा
इस बहुचर्चित मामले में सेबी का अंतिम खर्च बिल और भी ज्यादा हो सकता है। अभी तक सिर्फ स्टोरेज और इन्वेस्टर्स के डॉक्युमेंट्स की जांच पर ही 55.85 करोड़ रुपये की लागत आ चुकी है। सुप्रीम कोर्ट के निर्देशानुसार बाजार नियामक सहारा ग्रुप के 3 करोड़ से ज्यादा इन्वेस्टर्स की पहचान की जांच कर रहा है। कोर्ट ने निर्देश दिया है कि इस काम पर आने वाले पूरे खर्च का भुगतान सहारा को ही करना होगा।
एक वरिष्ठ अधिकारी ने कहा कि सेबी ने स्टोरेज डिजिटलीकरण और निवेशकों के डॉक्युमेंट्स की जांच का काम स्टॉक होल्डिंग कॉर्पोरेशन ऑफ इंडिया को दिया है। यह कॉन्ट्रैक्ट25.97 करोड़ रुपये का है। इसके अलावा इस मामले में विमोचन या रिडेम्पशन संबंधी काम का ठेका यूटीआई इन्फ्रास्ट्रक्चर टेक्नॉलजी ऐंड सर्विसेज को 29.88 करोड़ रुपये में दिया गया है।
इस पूरे मामले को देखने के लिए सुप्रीम कोर्ट ने एक रिटायर्ड जज की नियुक्ति की है, जिन्हें हर महीने 5 लाख रुपये दिए जा रहे हैं। इसके अलावा उनकी यात्रा, रहने और दूसरे खर्च अलग से हैं। यह पूरी रकम सेबी को खर्च करनी होगी, जो बाद में सहारा ग्रुप से वसूली जाएगी।
साभार:
भाषा | Apr 7, 2013, 02.13PM IST
http://navbharattimes.indiatimes.com/business/business-news/sebis-expense-bill-to-sahara-rs-55-crore-and-counting/businessarticleshow/19427321.cms
55 CRORE AND COUNTING... Sebi’s massive bill to Sahara for processing 24,000-cr refund
Final fee for verifying credentials of 3 cr investors will be much higher
MUMBAI: Market regulator Securities and Exchange Board of India (Sebi) has incurred initial costs of more than Rs55croreinitshumongoustaskoffacilitating the Rs 24,000-crore refund to bondholders of two Sahara firms after verifying their credentials. The Sahara group will now have to clear all these bills.
Sebi is engaged in a long-running case against two Sahara group firms --Sahara India Real Estate Corporation Ltd (SIRECL) and Sahara Housing Investment Corp Ltd (SHICL). The two firms were asked last year by the Supreme Court to refund over Rs 24,000 crore raised through issuance of certain bonds to an estimated three crore investors.
In its order dated August 31, 2012, the Supreme Court had allowed Sebi to engage investigators, other experts and supporting staff for the investor verification and refund processes. The court had also ruled that all these expenses would be borne by Sahara and be paid to Sebi.
Sebi is verifying the credentials of more than three crore investors for the refund as per a direction from the Supreme Court.
After Sahara firms were told by the Supreme Court to handover the investor documents to Sebi, the group sent 128 trucks with more than 31,000 cartons of papers to the regulatory authority's headquarters in Mumbai.
The final expense bill of Sebi in this high-profile case could be much higher, as just two contracts – for storing and scanning investor documents and for providing a platform to facilitate redemption related services – have cost it Rs 55.85 crore.
The market regulator has contracted Stock Holding Corporation of India (SHCIL) for the work relating to storage, digitisation and scanning of investor documents and for creation of a database, a senior official said, while adding that this contract is worth Rs 25.97 crore.
Besides this, another contract of Rs 29.88 crore was given to UTI Infrastructure Technology & Services for the work relating to redemption related activities in this case.
The Supreme Court has also appointed a retired judge to oversee the matter at a monthly remuneration of Rs 5 lakh in addition to travelling, accommodation and other expenses, all of which are borne by Sebi and recoverable from the Sahara group.
All the administrative expenses including payments to the additional staff and experts will also be borne by Sahara Group.
While detailed queries sent by media to Sahara remained unanswered, sources said that it has already received some expense bills from Sebi. However, it could not be ascertained whether Sahara has made any payments towards these expenses.
The Sahara group has claimed it has already repaid a vast majority of the investors and its total outstanding liability towards the bondholders is much less than Rs 5,120 crore given by it to Sebi towards the refund process.
Courtesy:
AGENCIES
http://epaper.timesofindia.com/Default/Scripting/ArticleWin.asp?From=Archive&Source=Page&Skin=MIRRORNEW&BaseHref=MMIR/2013/04/08&PageLabel=14&EntityId=Pc01406&ViewMode=HTML
MUMBAI: Market regulator Securities and Exchange Board of India (Sebi) has incurred initial costs of more than Rs55croreinitshumongoustaskoffacilitating the Rs 24,000-crore refund to bondholders of two Sahara firms after verifying their credentials. The Sahara group will now have to clear all these bills.Sebi is engaged in a long-running case against two Sahara group firms --Sahara India Real Estate Corporation Ltd (SIRECL) and Sahara Housing Investment Corp Ltd (SHICL). The two firms were asked last year by the Supreme Court to refund over Rs 24,000 crore raised through issuance of certain bonds to an estimated three crore investors.
In its order dated August 31, 2012, the Supreme Court had allowed Sebi to engage investigators, other experts and supporting staff for the investor verification and refund processes. The court had also ruled that all these expenses would be borne by Sahara and be paid to Sebi.
Sebi is verifying the credentials of more than three crore investors for the refund as per a direction from the Supreme Court.
After Sahara firms were told by the Supreme Court to handover the investor documents to Sebi, the group sent 128 trucks with more than 31,000 cartons of papers to the regulatory authority's headquarters in Mumbai.
The final expense bill of Sebi in this high-profile case could be much higher, as just two contracts – for storing and scanning investor documents and for providing a platform to facilitate redemption related services – have cost it Rs 55.85 crore.
The market regulator has contracted Stock Holding Corporation of India (SHCIL) for the work relating to storage, digitisation and scanning of investor documents and for creation of a database, a senior official said, while adding that this contract is worth Rs 25.97 crore.
Besides this, another contract of Rs 29.88 crore was given to UTI Infrastructure Technology & Services for the work relating to redemption related activities in this case.
The Supreme Court has also appointed a retired judge to oversee the matter at a monthly remuneration of Rs 5 lakh in addition to travelling, accommodation and other expenses, all of which are borne by Sebi and recoverable from the Sahara group.
All the administrative expenses including payments to the additional staff and experts will also be borne by Sahara Group.
While detailed queries sent by media to Sahara remained unanswered, sources said that it has already received some expense bills from Sebi. However, it could not be ascertained whether Sahara has made any payments towards these expenses.
The Sahara group has claimed it has already repaid a vast majority of the investors and its total outstanding liability towards the bondholders is much less than Rs 5,120 crore given by it to Sebi towards the refund process.
Courtesy:
AGENCIES
http://epaper.timesofindia.com/Default/Scripting/ArticleWin.asp?From=Archive&Source=Page&Skin=MIRRORNEW&BaseHref=MMIR/2013/04/08&PageLabel=14&EntityId=Pc01406&ViewMode=HTML
Sunday, April 7, 2013
Sebi attaches assets of 2 Sahara firms, freezes accounts
Sebi’s crackdown on the two Sahara group firms—Sahara Housing Investment Corp (SHICL) and Sahara India Real Estate Corp (SIRECL)—comes exactly a week after the Supreme Court criticized the market regulator for delays in acting against these firms that had raised money from three crore investors and failed to refund Rs 24,000 crore along with 15% interest. Passing two separate orders, the market regulator said the two companies had raised Rs 6,380 crore and Rs 19,400 crore respectively from the public and committed “various illegalities” while raising these funds.
Tax demands worry experts
Aspate of high-profile tax demands on several MNCs such as Shell, Nokia and Vodafone could potentially harm sentiment, experts have warned while hoping the Budget will have some steps to ensure fair dispute resolution. Even individual taxpayers have been served notices despite disputes being settled.
Sahara case: Sebi asks banks to transfer money to refund a/c
Mumbai: “I direct the freezing of all the bank accounts, demat accounts of Subrata Roy Sahara, Vandana Bhargava, Ravi Shankar Dubey and Ashok Roy Choudhary with immediate effect. I further direct attachment of all movable and immovable properties standing in the names of …these individuals are restrained from alienating, disposing or in any manner encumbering the movable and immovable properties standing in their individual names,” said Sebi’s wholetime member Prashant Saran in the order.
Sebi directed them to furnish details of all these properties in their name within 21 days. Besides, Sebi also asked banks to transfer the amounts lying in those accounts to the Sebi-Sahara Refund Account. A copy of the order has been sent to the Reserve Bank of India and the Enforcement Directorate.
In a statement later, Sahara said that its total liability is not likely to exceed Rs 5,120 crore, which has already been deposited with Sebi. “Today’s order of Sebi for attachment of these assets is based on old facts and details of assets as of January, 2012. Since, then facts have changed in view of redemptions made by Sahara from time to time. This fact of redemption was known to Sebi. Hence, today’s order does not take into account the changed facts and circumstances,” it said. It further said that as per the SC order the the liability to refund the monies is of SIRECL and SHICL. “Hence, attachment, of assets of the individuals by Sebi is incorrect”, the statement said.
The purchase value of the attached properties at cost price is pegged at over Rs 20,000 crore, which would now be substantially higher. This includes the attachment of Sahara’s prized 1,020 acres of land in Amby Valley near Mumbai, bought for Rs 4,845 crore and 43% of equity shares of Aamby Valley Limited bought for Rs 6,443 crore. Besides, it also includes a 59% stake in the Versova project bought for Rs 3,327 crore, stakes in townships projects and various other land parcels across the country.
It may be recalled that apex court in its order on August 31, 2012, had asked Sebi to ascertain the genuineness of an estimated three crore bondholders of Optionally Fully Convertible Debentures (OFCDs) of the two Sahara group companies and thereafter facilitate refund of the money with interest. Following the court directive, Sebi decided to carry out in-person verification of these bondholders.
However, the court later allowed the Sahara group firms to refund the money in three instalments till the first week of February 2012. These included an immediate payment of Rs 5,120 crore, followed by an instalment of Rs 10,000 crore in the first week of January and the balance by the first week of February. In its orders on Wednesday, Sebi said that neither of the two instalments were paid and therefore it was forced to take action.
Sahara has claimed that only Rs 2,620 crore remains to be refunded to investors since it had already paid back Rs 19,400 crore. The two Sahara group firms had raised Rs 24,029 crore from investors by selling OFCDs between 2008 and 2011, which according to the market regulator was in violation of public-issue norms under the Companies Law and the Sebi Act.
COURTESY:
TIMES NEWS NETWORK
http://epaper.timesofindia.com/Default/Scripting/ArticleWin.asp?From=Archive&Source=Page&Skin=TOINEW&BaseHref=TOIM/2013/02/14&PageLabel=22&EntityId=Ar00304&DataChunk=Ar02200&ViewMode=HTML
Sahara Properties Attached By Regulator Have Already Been Pledged
Will Sebi move help recover funds?
Mumbai: Most of the Sahara Group properties that Sebi has ordered to be attached have already been pledged. Sebi may not be able to sell many of these properties to recover funds to repay bondholders as they have been pledged by the Sahara Group to raise funds.
The regulator had also ordered its promoters to restrain from disposing or in any manner encumbering their movable and immovable properties.
Sebi, however, has created more trouble for the Subrata Roy-led Sahara Group, which may find it difficult to do many of its businesses as it will not be able to use these attached properties.
“Sebi has attached properties based on our affidavit in Supreme Court dated January 4, 2012. Since then, a lot of things have changed. After the Supreme Court judgment in August 2012, we have redeemed most of the bondholders. I am aware a part of the money was raised by pledging these (attached) properties as securities with the banks and financial institutions,” Sahara counsel Kishore Lahiri told TOI.
Sahara claims that most of the bondholders’ money has been paid and it has deposited Rs 5,120 crore with Sebi, which is more than enough to pay the remaining bondholders.
“If that be the case (Sahara assets already being pledged) I doubt if Sebi will be able to recover the funds by attaching these properties as it would lead to further litigations. If there is a third party interest already created in these attached properties, Sebi just can’t sell them to recover money,” said another senior counsel, who is not involved in the case, on condition of anonymity.
However, Ashwin Mathew, consultant with Khaitan & Co, differs. “The regulators will have an upper hand on the attached property compared to the third parties, who are bound by agreements with Sahara. No doubt, it will lead to litigations and further complicate the matter but the creditors will have to recover their dues from Sahara firms.”
Harish Salve, a senior Supreme Court counsel and former Solicitor General, told TOI, “It’s not whether Sebi can recover or not recover the dues by attaching the Sahara properties. The exact values of these properties are not known. The Supreme Court has taken the matter very seriously and it’s the liability of the Sahara firms to repay bondholders or they will be inviting serious problems.”
But the Sahara counsel is livid. “I just can’t understand how Sebi can do that (attach properties), when these properties do not belong to the two companies in question. You can’t attach properties of promoters of company, which is limited by liability. The details of the assets were furnished for different reasons as the court wanted to know where the investors’ funds have been invested,” said Lahiri. Sahara senior counsel Ram Jethmalani, however, declined to comment as the matter was sub judice.
SEBI-SAHARA STANDOFF
Piyush Pandey TNN
http://epaper.timesofindia.com/Default/Scripting/ArticleWin.asp?From=Archive&Source=Page&Skin=TOINEW&BaseHref=TOIM/2013/02/15&PageLabel=25&EntityId=Ar02500&ViewMode=HTML
Mumbai: Most of the Sahara Group properties that Sebi has ordered to be attached have already been pledged. Sebi may not be able to sell many of these properties to recover funds to repay bondholders as they have been pledged by the Sahara Group to raise funds.
The regulator had also ordered its promoters to restrain from disposing or in any manner encumbering their movable and immovable properties.
Sebi, however, has created more trouble for the Subrata Roy-led Sahara Group, which may find it difficult to do many of its businesses as it will not be able to use these attached properties.
“Sebi has attached properties based on our affidavit in Supreme Court dated January 4, 2012. Since then, a lot of things have changed. After the Supreme Court judgment in August 2012, we have redeemed most of the bondholders. I am aware a part of the money was raised by pledging these (attached) properties as securities with the banks and financial institutions,” Sahara counsel Kishore Lahiri told TOI.
Sahara claims that most of the bondholders’ money has been paid and it has deposited Rs 5,120 crore with Sebi, which is more than enough to pay the remaining bondholders.
“If that be the case (Sahara assets already being pledged) I doubt if Sebi will be able to recover the funds by attaching these properties as it would lead to further litigations. If there is a third party interest already created in these attached properties, Sebi just can’t sell them to recover money,” said another senior counsel, who is not involved in the case, on condition of anonymity.
However, Ashwin Mathew, consultant with Khaitan & Co, differs. “The regulators will have an upper hand on the attached property compared to the third parties, who are bound by agreements with Sahara. No doubt, it will lead to litigations and further complicate the matter but the creditors will have to recover their dues from Sahara firms.”
Harish Salve, a senior Supreme Court counsel and former Solicitor General, told TOI, “It’s not whether Sebi can recover or not recover the dues by attaching the Sahara properties. The exact values of these properties are not known. The Supreme Court has taken the matter very seriously and it’s the liability of the Sahara firms to repay bondholders or they will be inviting serious problems.”
But the Sahara counsel is livid. “I just can’t understand how Sebi can do that (attach properties), when these properties do not belong to the two companies in question. You can’t attach properties of promoters of company, which is limited by liability. The details of the assets were furnished for different reasons as the court wanted to know where the investors’ funds have been invested,” said Lahiri. Sahara senior counsel Ram Jethmalani, however, declined to comment as the matter was sub judice.
SEBI-SAHARA STANDOFF
- 2008-11: Sahara India Real Estate & Sahara Housing Investment, part of Subrata Roy-led group, collect 24,000cr from over 2.96cr investors in 3 years via OFCDs
- Nov 24, 2010: Sebi bars two Sahara cos from raising funds
- Nov 29: Sahara moves HC
- Dec 13: HC stays Sebi ban against Sahara companies
- Jan 4, 2011: SC dismisses Sebi plea against HC relief to Sahara
- May 12: SC asks Sebi to pass order in Sahara row
- June 23: Sebi asks Sahara cos to refund money
- June 27: Sahara moves SC
- Aug 31, 2012: SC asks Sahara firms to deposit money with Sebi for refund with 15% interest
- Sept 26: Sebi moves SC Oct 5: Sahara seeks review of SC verdict on refunding money
- Oct 19: SC says Sebi should act against Sahara
- Nov 2: Sebi files contempt plea against Sahara
- Dec 3: SC tells Sahara cos to refund 24,000cr
- Feb 13: Sebi attaches properties and accounts of the two Sahara firms, directors and promoters
Piyush Pandey TNN
http://epaper.timesofindia.com/Default/Scripting/ArticleWin.asp?From=Archive&Source=Page&Skin=TOINEW&BaseHref=TOIM/2013/02/15&PageLabel=25&EntityId=Ar02500&ViewMode=HTML
Sebi attaches Sahara properties
Mumbai: The regulator Securities and Exchange Board of India finally ordered attachment of assets of Sahara India Real Estate Corporation and Sahara Housing Investment Corporation.
The capital markets regulator has also ordered a freeze on all bank and demat accounts of Subrata Roy Sahara, Vandana Bhargava, Ravi Shanker Dubey and Ashok Roy Choudhary -- the promoters and directors of the two companies with immediate effect.
Sebi asked the two companies along with directors to furnish details of all the movable and immovable properties standing in their names with 21 days. The companies and directors will not be allowed to dispose of any property specified in the order.
All accounts and investments of Sahara Housing in all banks have been ordered transferred to the Sebi -Sahara refund account. Sebi also directed the Sahara companies to disclose nature of development rights and names of partnership companies where Sahara Housing has stakes.
Sebi has asked Sahara India Real Estate and Sahara Housing to deposit the cash balances and fixed deposits worth Rs 1,655 crore and Rs 309.19 crore to Sebi with immediate effect.
The order comes after the Supreme Court on February 6, 2013, pulled up Sebi for not taking action against the companies as per its August 31, 2012 order which had asked it to attach properties and freeze bank accounts of the companies.
The court had also given Sebi a free hand to take action against two Sahara group companies for defying court orders by not refunding full Rs 24,029 crore along with 15% interest to investors within stipulated time of three months.
COURTESY:
Nitin Shrivastava & Aswathy Varughese l @nitinpshri, @Aswathy_04
Published Date: Feb 14, 2013
http://epaper.dnaindia.com/story.aspx?id=39012&boxid=23505&ed_date=2013-02-14&ed_code=820009&ed_page=1
The capital markets regulator has also ordered a freeze on all bank and demat accounts of Subrata Roy Sahara, Vandana Bhargava, Ravi Shanker Dubey and Ashok Roy Choudhary -- the promoters and directors of the two companies with immediate effect.
Sebi asked the two companies along with directors to furnish details of all the movable and immovable properties standing in their names with 21 days. The companies and directors will not be allowed to dispose of any property specified in the order.
All accounts and investments of Sahara Housing in all banks have been ordered transferred to the Sebi -Sahara refund account. Sebi also directed the Sahara companies to disclose nature of development rights and names of partnership companies where Sahara Housing has stakes.
Sebi has asked Sahara India Real Estate and Sahara Housing to deposit the cash balances and fixed deposits worth Rs 1,655 crore and Rs 309.19 crore to Sebi with immediate effect.
The order comes after the Supreme Court on February 6, 2013, pulled up Sebi for not taking action against the companies as per its August 31, 2012 order which had asked it to attach properties and freeze bank accounts of the companies.
The court had also given Sebi a free hand to take action against two Sahara group companies for defying court orders by not refunding full Rs 24,029 crore along with 15% interest to investors within stipulated time of three months.
COURTESY:
Nitin Shrivastava & Aswathy Varughese l @nitinpshri, @Aswathy_04
Published Date: Feb 14, 2013
http://epaper.dnaindia.com/story.aspx?id=39012&boxid=23505&ed_date=2013-02-14&ed_code=820009&ed_page=1
Sahara Group order could freeze real estate projects across India
Mumbai: The action by the Securities and Exchange Board of India (Sebi) against the Sahara group of companies brings a large number of real estate projects under the freeze.
The Sebi order is based on an affidavit filed on behalf of Sahara India Real Estate Corporation and Sahara Housing Investment Corporation to the Supreme Court where they had given details of the investment made from the monies generated through debentures.
Other than freezing the Aamby Valley development project spread over 707 acres, it also brings in its sweep 186 acres in Gurgaon. The order by Sebi’s whole-time member Prashant Saran says, “The development rights are held by various Sahara group entities and purchased for a consideration of Rs 1,436 crore.”
It also attaches between 90 to 95 per cent stake in a swathe of 64 projects in 64 towns across India, mostly under the name Sahara City Homes. The development rights in these projects were purchased by various Sahara companies for Rs 1,105 crore the order points out.
The Sebi order seeks attachment of all other movable and immoveable properties owned or held by the two companies with immediate effect. It has asked them not to “alienate, dispose or in any manner encumber the same”.
The Sahara group has contested the regulator’s order. In an email statement to The Indian Express, it notes “The total liability is not likely to exceed Rs 5,120 crore, which amount has already been deposited with Sebi. As regards the instalments to be deposited with Sebi as per the order of the Hon’ble Supreme Court, Sahara has filed interim application before the.... court interalia praying that Sahara be permitted to furnish security through a credible financial institution instead and in place of the payment of the balance instalments, since Sahara has already redeemed significant number of (debenture holders) and any further payments to Sebi would amount to double payment. The said interim application is pending and is likely to come up next week.”
The apex court in August last year had asked Sahara group firms to refund the money with 15 per cent interest and had asked Sebi to facilitate the refund. However, the group in December 2012 was allowed to pay the money in three instalments, including an immediate payment of Rs 5,120 crore.
COURTESY:
ENS Economic Bureau: Mumbai, Feb 14 2013, 01:03 IST
http://www.financialexpress.com/news/sahara-group-order-could-freeze-real-estate-projects-across-india/1073772/0
Sahara’s significant otherworth
The combined market capitalisation of the two listed companies of the Sahara group whose assets have been ordered frozen by the Securities and Exchnage Board of India ( Sebi) is just ? 230 crore. However, the combined liability, in the Sebi order, is ? 24,000 crore.
So, what does the Sahara empire consist of apart from the two listed companies, Sahara Housing Finance Corporation and Sahara One Media & Entertainment? To begin with, its flagship Aamby Valley project, spread over 10,600 acres near Lonavala, is estimated to be valued at ? 40,000 crore. Of this, Sebi’s order covers only 1,020 acres.
Its other known entities include Grosvenor House in London, purchased at around ? 4,000 crore. Then, it has a number of companies, including Sahara India Life Insurance, Sahara Asset Management Company, Sahara City Homes and Sahara Star Mumbai. The last one was bought for ? 115 crore and the group has invested ? 800 crore to renovate it. In 2011, Sahara paid $ 100 million ( Rs 550 crore) for a 42.5 per cent stake in the Force India Formula One ( motor racing) team. The group never seems to be short of cash.
No wonder, Sebi is not satisfied by attaching the two properties, Sahara India Retail Estate Corporate and Sahara Housing Investment Corporation, and freezing the accounts, eyeing the other properties to ensure repayment to investors. The market regulator has given 21 days to the company to furnish full details of its other properties and barred it from alienating or disposing any assets. It’s also given 21 days to the Sahara head and three other top officials to provide details of all their properties.
Sebi, so far, has only attached the properties that Sahara had listed in a January 2012 declaration to the Supreme Court ( SC), of assets in which the funds mobilised was invested. By its own affidavit to the SC, the total investment value of the assets, including cash and receivables, was ? 16,836 crore, less than the refund amount. This leaves a shortfall of ? 7,164 crore.
Data on nine companies provided by Capitaline suggests all of them put together have a net worth of ? 5,312 crore, by the latest available financial data.
It is difficult to gauge the net worth of the group due to absence of financial disclosures in the public domain. As a result, even the promoter’s holdings in the group are unclear. The two listed companies’ stock prices fell 19 per cent and five per cent in early trade but closed up.
"One should remember that both the listed companies of the Sahara group have insignificant market capitalisation.
It is only since they belong to the Sahara group that they were impacted. I do not think the development has anything to do with the listed entities; these are independent entities and assets of these entities cannot be attached.” said independent analyst S P Tulsian.
Meanwhile, Sahara is maintaining its total liability doesnt exceed ? 5,120 crore and it had already deposited the amount with Sebi. The company is counting on lower liability.
However, Sebi is unwilling to buy the Sahara version. Its order has said that given the redemption profile of the bonds, it was “ not capable” that such a high amount would have got redeemed.
With listed firms’ mkt cap at ? 230 cr, Sebi order to give details on other assets is key.
COURTESY:
JITENDRA KUMAR GUPTA & SAMIE MODAK
Mumbai, 14 February
http://epaper.business-standard.com/bsepaper/svww_zoomart.php?Artname=20130215aC002101011&ileft=173&itop=145&zoomRatio=130&AN=20130215aC002101011
Sebi pre- empting legal process: Sahara
Nearly 24 hours after the capital markets regulator came out with orders freezing accounts and properties of two Sahara Group companies, Sahara counsel K K Lahiri today said by attaching its properties, the regulator is pre- empting the legal process involving the groups application in the Supreme Court.
The counsel said the group would finalise its future course of action during the week- end as the Securities and Exchange Board of India (Sebi)’ s orders came a day ago.
In the first week of January, the two Sahara companies-Sahara India Real Estate Corp ( SIREC) and Sahara Housing Investment Corp ( SHIC)-- moved the Supreme Court saying the money deposited with Sebi-Rs 5,120 crore-- was more than adequate to meet payments to investors and the matter was to come up for hearing next week, the counsel said.
"Money we have deposited is more than adequate to meet all our liabilities, and if we have to pay the next two installments during the first week of January and February, we would have paid the same amount two times," he said.
Asked what will be the groups future course of action, he said: “ We have not finalised any action yet. We will decide our action over the week- end." On Wednesday, Sebi passed two separate orders asking banks to freeze accounts and seize properties of SIREC and SHIC.
COURTESY:
BS REPORTER
Mumbai, 14 February
http://epaper.business-standard.com/bsepaper/svww_zoomart.php?Artname=20130215aC002101008&ileft=355&itop=584&zoomRatio=130&AN=20130215aC002101008
Subscribe to:
Posts (Atom)