High Court asks Sebi to seek clarity on Sahara's seizure order

The division bench of the High Court in Lucknow on Wednesday advised Securities and Exchange Board of India (Sebi) to seek clarification on the point whether the Supreme Court's order regarding seizure of assets was meant only for Sahara Housing Investment Coproration (SHICL) and Sahara India Real Estate Coproration (SIRECL) or for all group companies. Sahara India had filed a writ before Lucknow bench of the Allahabad High Court seeking quashing of market regulator Sebi's February 13 order. Sahara's advocate Prashant Chandra said that the apex court's directions were confined to two companies namely SIRECL and SHICL but Sebi had illegaly seized the properties of Sahara India and the personal assets of its partners. Prashant Chadra said that Sebi had wrongly interpreted and implemented the order of the Supreme Court. He said that all group companies are separate entities and liability of one entity cannot be shifted on other entities as every entity has its separate identity and maintains separate Books of Accounts and Balance Sheet. He claimed that Sebi, instead of following the judgement in its letter and spirit, has indulged in media publicity and passing unwarranted orders with ulterior motive. Justice UN Singh and Satish Chandra, while asking SEBI to seek clarifications, fixed April 12 as the next date of hearing. SEBI and Sahara India have been locked in a long battle over the return of 24,0000000000 raised by SHICL and SIRECL through00000 of depositors.