Sahara boss Subrata Roy sent to police custody till March 4

Sahara chief Subrata Roy pleaded before the court to be allowed to stay at home, which was denied.
NEW DELHI/LUCKNOW: Sahara chief Subrata Roy has been sent to police custody on Friday by the chief judicial magistrate Anand Kumar Yadav's court till March 4. Earlier in the day, amid high security, Roy was taken to the court from Sahara Sahar by Uttar Pradesh Police, several hours after he "surrendered" and was arrested at his home.

Roy pleaded before court to be allowed to stay at home.

His convoy exited at about 5.15pm from the rear gate to give a slip to the large number of media persons who had been camping there since Friday morning.

There was heavy deployment of police force and Provincial Armed Constabulary personnel at the main gate of the Sahara Sahar.

Roy was arrested in the morning after having evaded for two days a non-bailable warrant issued by the Supreme Court for his failure to appear before it in a case of non-refund of Rs 20,000 crore to investors.
Courtesy
TNN | Feb 28, 2014, 06.40PM IST
(With inputs from PTI)
http://timesofindia.indiatimes.com/business/india-business/Sahara-boss-Subrata-Roy-sent-to-police-custody-till-March-4/articleshow/31178027.cms

Sahara chief goes missing as UP cops turn up at doorstep

Had Said He Wanted To Be By Mom’s Side
Lucknow: A 12-member Lucknow police team on Thursday spent over two hours in Sahara Shaher to arrest business magnate Subrata Roy, only to emerge out of his palatial bungalow to tell the media that he could not be found.

The Supreme Court had on Wednesday ordered a non-bailable warrant against the Sahara group boss in a case involving the refund of over Rs 20,000 crore to investors after he failed to appear before it, citing his mother’s ill health.

The police also visited the medical facility in Roy’s house where his 92-year-old ailing mother, Chhabi Roy, is undergoing treatment for various ailments, but failed to find
him there too.

Will arrest Sahara chief the moment he is traced: Police
Lucknow: A police officer who was part of the team that went searching for Subrata Roy on Thursday told news agencies that though the Sahara boss had told the Supreme Court through his lawyers that he wanted to be by his mother’s bedside holding her hand, he was nowhere to be found in the hospital that she is undergoing treatment.

The police then informed his brother J B Roy, who was present there, about the purpose of their visit and left. The entire search operation was videographed by the team. SSP Praveen Kumar confirmed the police team could not find Roy at Sahara Shaher in Vipul Khand, Gomtinagar, his residential address mentioned in the NBW.

“But we are on the lookout,” Kumar said, adding police teams were keeping a close watch on two other locations for Roy, but refused to elaborate. The officer further said there were certain conditions in which the police usually arrest a person against whom an NBW has been issued. “But (in Roy’s case) we won’t take any chances at all and arrest him the moment he is traced,” SSP Kumar said.

The search operation generated a great deal of curiosity with media crew and outdoor broadcast vans converging outside the towering gates of the palatial 225-acre premises at 3.45pm.

A posse of private guards allowed only cops to enter Sahara Shaher, with the media being kept out. Two hours later, the police team walked out with the officers looking to evade the media, in vain. Inspector Ajit Chauhan then told reporters that he was there to serve the SC-mandated NBW on Roy. “We could not find him inside though we searched the premises,” he said, adding that the next course of action would be decided by senior officers.

SSP Kumar said he was confident that the police would be able to produce Roy before the apex court on March 4.
COURTESY:
Pervez Iqbal Siddiqui TNN
http://epaper.timesofindia.com/Default/Scripting/ArticleWin.asp?From=Archive&Source=Page&Skin=TOINEW&BaseHref=TOIM/2014/02/28&PageLabel=1&EntityId=Ar00104&ViewMode=HTML

Sahara chief Subrata Roy surrenders in Lucknow

NEW DELHI: Sahara chief Subrata Roy surrendered on Friday in Lucknow and was taken into custody by the UP Police.

Senior advocate Ram Jethmalani informed the Supreme Court that Subrata Roy had surrendered in Lucknow.

The apex court, meanwhile, declined to constitute a bench of Justice K S Radhakrishnan and JS Khehar to urgently hear Subrata Roy's plea for recalling the arrest warrant.

SC told Roy's counsel that it would not be possible to constitute the bench at short notice for hearing his application, in which he tendered unconditional apology for absenting himself on Febuary 26.

The Sahara chief may remain in police custody till March 4, when he is to be produced in the apex court.

The surrender comes a day after UP Police team on Thursday led a raid in Lucknow to arrest the Sahara chief.

The police team did not find the Sahara chief at his residence.

Subrata Roy's son addressed a press conference announcing that Sahara chief had surrendered willfully.

He also informed that the Sahara chief would be moving again for relief from Supreme Court.

Earlier on Friday, Subrata Roy said that he was not absconding from arrest and was ready to "unconditionally follow" whatever direction the Supreme Court gives him.
COURTESY:
TNN | Feb 28, 2014, 10.46 AM IST
http://timesofindia.indiatimes.com/india/Sahara-chief-Subrata-Roy-surrenders-in-Lucknow/articleshow/31151724.cms

Reveal source of Rs 22k cr paid to investors: SC to Sahara

Sahara's two real estate companies have been given two weeks to respond

While the restraint on Sahara boss Subrata Roy from going abroad was retained, the Supreme Court today asked his two real estate companies to disclose in two weeks the source of funds if they had repaid  Rs 20,000 crore to its investors in bonds, as they claimed. 

The companies have maintained that they have repaid 90% of the investors. If that was so, the judges said, the source should have been reflected in the balance sheet. The court order to return the investment is two years old, but it has not been done according to Sebi.

The bench headed by Justice K S Radhakrishan told Sahara counsels that the companies will definitely  have to return the money. “Now we will call the Registrar of Companies to find out the source of money and even order a CBI inquiry into the whole affair,” the judge said.

“The court is not helpless; we will see that that our order is fully complied with,” the judges observed in a fusillade of observations against the companies. They pointed out that the order to return the money to the investors was passed two years ago, and subsequently Sebi had moved the court for contempt action. That was nine months ago. “We don’t want to burden the Sebi anymore,” the judges said threatening to take the fight to the Registrar of Companies who they said was not doing anything in the matter.

“We have given maximum indulgence. We are driven to call the Registrar,” the court remarked. “If you take the history of the case, there is inconsistency in every affidavit filed by the Sahara companies. We have been most generous in this matter, but you don’t appreciate our indulgence.”

Though the court expected the Sahara firms to provide sufficient securities in the nature of title deeds of assets which could guarantee the refund to the investors, Sebi counsel Arvind Datar today pointed out that all the property titles are shaky. Amby Valley project in Maharashtra is riddled with litigation and false power of attorney transactions for which one key person has been arrested. Moreover, the entire project is without environment clearance for which litigation is pending.

Some other properties in other parts of the country also have been valued exhorbitantly to meet the court’s demand for adequate security. In several cases, the property was bought for a sum and the valuation showed more than 50 times appreciation in ten years. Some deeds are not traceable, Datar said.

In view of the objections of Sebi about the title deeds, there was no arguments about Roy going out on business as the permission was conditional on sufficient security to the satisfaction  of Sebi.

Sebi had raised contempt action with regard to Sahara’s advertisements in all leading papers about the pending cases.  The court had at last hearing ordered publication  of apology in all the papers with equal prominence. The judges said in a lighter vein that they read all the newspapers and they have not been able to spot any apology so far. It should be done before Janauray 28, when the case will be heard again, after the production of title deeds with adequate security.
Courtesy:
M J Antony  |  New Delhi
January 9, 2014 Last Updated at 16:42 IST
http://www.business-standard.com/article/current-affairs/reveal-source-of-rs-22k-cr-paid-to-investors-sc-to-sahara-114010900737_1.html

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. 

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

Sahara India under EPFO scanner for payment defaults

Sahara India, which is already being investigated by market regulator Sebi, has now also come under the scanner of the provident fund department and is amongst the top defaulters of the Employees' Provident Fund Organisation (EPFO) in the country.

Five of the group firms including Sahara India Financial Corporation and the former Sahara Airlines are part of the top 50 companies in the country that have defaulted on depositing contributions to the Employees' Pension Fund on behalf of its employees.

Official data reveals that in total, the Subrata Roy-promoted group owes Rs 3,341.67 lakh to the EPFO as dues (see chart).

These largely relate to the Employees' Provident Fund (EPF) linked Employees' Pension Scheme.

Under the scheme, 8.33 per cent from the 24 per cent provident fund contributions (12 per cent as employees' share and 24 per cent of employer's share) are deposited.

According to the Employees' Provident Fund Act, it is a criminal offence for an employer to deduct but not deposit employees' provident fund and related contributions. In such cases, the EPFO can also seize property of the defaulter to recover dues and the defaulter can be charged under Sections 405 and 420 of the Indian Penal Code.

Significantly, Sahara India first came under the EPFO's radar after it published numerous advertisements in national newspapers that boasted of a 10 lakh plus workforce.

Following this, the provident fund department had asked the group to furnish details of its employees.

But the Lucknow headquartered group then approached the Allahabad High Court against the notice. It was however directed by the High Court earlier this year to submit all relevant details to the provident fund department.

More than one email from The Indian Express sent to Sahara got no response from the group.

Sahara is already under investigation the by market regulator Sebi in a refund case involving over Rs 24,000 crore it collected from over three crore investors.

The Securities Appellate Tribunal is understood to take up for hearing sometime this week an appeal by Subrata Roy against a Sebi order to freeze his assets, along with similar appeals filed by two Sahara group firms and three other directors.
Courtesy:
Surabhi : New Delhi, Mon Apr 22 2013, 09:20 hrs
http://www.indianexpress.com/news/sahara-india-under-epfo-scanner-for-payment-defaults/1105753/0

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