SEBI summons Subrata Roy in investor refund case

The Securities and Exchange Board of India (SEBI) has summoned the promoters of Sahara group “to appear in person” before it on April 10 to ascertain the details of their assets and to facilitate settling of terms of proclamation of the sale of their immovable properties attached as per Supreme Court order. The order was issued to Ashok Roy Choudhary, Ravi Shankar Dubey, Vandana Bhargava and Subrata Roy Sahara who are the directors / promoters of Sahara India Real Estate Corporation Limited (SIRECL) and Sahara Housing Investment Corporation Limited (SHICL). “These persons are further directed to submit by way of an affidavit on or before April 8, 2013, a list of all their assets and details thereof (including properties, monies, bank accounts, enumerated in the attachment orders dated February 13, 2013) situated in India or outside India, including any charge, encumbrance created over them,” Prashant Saran, Whole Time Member, SEBI said in his order. This order was issued in compliance with the direction of the Supreme Court orders of August 31, 2012 and December 5, 2012. SEBI has also directed these individuals to produce in original, all title deeds of their assets which were attached by SEBI. The regulator also wants the promoters to produce details of their bank accounts situated in India and outside, along with their income tax returns and wealth tax returns filed from financial year 2007-08 onwards and assessment orders wherever passed for the relevant assessment years. SEBI has also directed the promoters to disclose the assets and investments of SIRECL and SHICL to facilitate the regulator to proceed with liquidation of their assets to mobilise funds towards payment to its investors as per the direction of the Supreme Court order. The capital market regulator directed these four persons to furnish by way of an affidavit before April 8, 2013 a list of all the holding companies, subsidiaries, associate companies, partnerships, special purpose vehicles, co-operative societies and including their registered addresses name of the directors / partners along with PAN number, shareholdings, cross holdings and partnership share. “In case these persons fail to appear before me as ordered hereby the terms of the proclamation of sale shall be settled, ex-parte, without prejudice to any other action that may be initiated against them,” Mr. Saran said. The Sahara group has been making an all-out effort to circumvent the orders of the courts and the capital market regulator, in an attempt not to reveal details of investors who deposited funds in the optionally fully convertible debentures (OFCD) issued by the group companies of SIRECL and SHICL.