amar ujala newspaper 03/09/2016

The Supreme Court asked the Sahara group on Friday to disclose the source from where it raised `23,000 crore in 2013 to refund three crore investors who had parked funds with two companies -Sahara Housing and Sahara Real Estate.

A bench of Chief Justice T S Thakur and Justices A R Dave and A K Sikri told senior advocate Kapil Sibal, who was representing Sahara, “We have no doubt about the capacity of your client (Sahara group) to distribute the money in cash to millions of investors across the country even when the Supreme Court and market regulator Sebi were after you. But you must show us the source from where you managed such huge cash.“ Sibal said `23,000 crore was raised from various companies of the Sahara group. “We will give all details on the next date of hearing,“ he said. The next hearing is on September 16.

The SC had directed the two Sahara group companies to refund `24,000 crore to three crore investors after finding that they had raised it illegally through optionally fully convertible debenture (OFCD) bonds. Sahara, which has deposited nearly Rs 12,000 crore with Sebi, had time and again claimed that it had refunded an overwhelming majority of investors and that was the reason why Sebi had not found investors coming forward to claim their money . When Sibal raised that issue yet again, the bench said, “You (Sahara group) said you have paid three crore investors Rs 23,000 crore in two months. Where did you get this much of money and that too in cash as you claim that most of the refund was through cash transaction. Does this group of companies carry on business in cash?“ The Sahara group had moved an application before the bench on Friday seeking permission to bring Rs 310 crore from London to India, which it said it had received as advance as part of the negotiations for sale of Grosvenor House Hotel.

amar ujala newspaper 03/09/2016 :