SC directs Sahara to reply to Sebi's contempt plea in a week
The Supreme Court today pulled up Sahara Group and its chief Subrata Roy for not responding to the contempt plea filed against them by market regulator Sebi. The Supreme Court today pulled up Sahara Group and its chief Subrata Roy for not responding to the contempt plea filed against them by market regulator Sebi. The apex court asked Subrata-Roy led Sahara Group to explain why it is has not complied with market regulator's order to refund Rs24,0000000000 to investors in theoptionally fully convertible debenture case. It lso directed the group to file a reply within a week to Sebi's plea to initiate contempt action against Roy as well as the latter's demands to restrain movement of Roy along with two other company directors. On March 15, market regulator Sebi had moved the apex court seeking the arrest of Roy and barring him from leaving the country after two companies of the group had failed to comply with the court's order to refund Rs 24,0000000000 to its investors. The apex court has scheduled the hearing for Sebi's petition against Roy and group directors Ashok Roy Choudhary and Ravi Shankar Dubey to 2 May. The Supreme Court also slammed the Sahara Group for approaching Allahabad High Court and other forums in a case pertaining to refund of Rs 24,0000000000 to its investors. Sebi has accused Sahara of raising000 of0000000 from small investors through an outlawed financial scheme and failing to comply with the Supreme Court's order issued in August to refund Rs 25,0000000000 to nearly three0000000 investors. Sahara, however, has said it has paid Rs 20,0000000000 to investors and deposited Rs 5,0000000000 with Sebi, which it says the regulator has failed to distribute. The Supreme Court today also accused Sahara of manipulating the court order as it had never directed the company to refund investors directly. It also clarified that Sebi need not go hunting for Sahara's unidentified investors, for if they are not found, Sebi can deposit the money with the government. "Pay genuine investors from the money deposited by Sahara, transfer the remaining funds to the government if you do not find genuine investors," the court told Sebi. SEBI urged the court to allow it to "take measures for arrest and detention in civil prison of Subrata Roy, Ashok Roy Choudhary and Ravi Shankar Dubey after giving reasonable opportunity of hearing." SEBI also sought direction that their passports be deposited with the Supreme court. Sahara group and SEBI are locked in legal dispute over the refunding of 24,0000000000 by its two companies--SIREC and SHIC--to over three0000000 investors. Earlier, the Supreme Court had dismissed its plea for more time to refund the amount. SIREC and SHIC along Roy are facing contempt proceedings in the apex court which had on February 6 allowed SEBI to freeze accounts and seize properties of its two companies for defying court orders by not refunding the money to investors.