Sahara India Pariwar defies Securities Appellate Tribunal (SAT)

Sahara India Pariwar is very much in news in from last few months for violation of regulatory norms as claimed by Securities and Exchange Board of India (SEBI). However, things are getting better with the passage of time after Sahara India Pariwar moved to Securities Appellate Tribunal (SAT) regarding this matter. Earlier Sahara India Pariwar headed to the Ministry of Corporate Affairs for the protection from the allegation which was made by SEBI before heading to the Supreme Court.
Subrata Roy Sahara, chairman of Sahara India Pariwar wrote a letter to the Ministry of Corporate Affairs, requesting them to end taking any action against Sahara India Pariwar as long as its case is pending in the Supreme Court. Mr Veerappa Moily, Minister of Ministry of Corporate Affairs responded so well promising to do his best.
The disputed was that SEBI asked Sahara India Pariwar to refund Rs. 24000 crore to investors and Sahara India Pariwar raised over Rs. 19,400 crore from 2.21 crore investors, expressing it as a Private Placement whereas SEBI asked it to refund this money along with 15 percent penal interest. Later on Sahara India Pariwar headed to Supreme Court which asked it to approach the Securities Appellate Tribunal and SAT ordered Sahara India directing its two companies (Sahara India Real Estate Corporation which is now known as Sahara Commodity Services Corporation Ltd and Sahara Housing Investment Corporation) to refund Rs. 17,400 Crore to their investors.
Again Sahara India Pariwar moved to Supreme Court challenging Securities Appellate Tribunal (SAT) order on refunding Rs. 17,400 Crore that was raised from investors through financial instrument OFCD. Supreme Court directed its stay on the SAT order until its further directions. Sahara India Pariwar now has said that the two of its companies are ready to file affidavit giving details of their financial status and assured that the interest of the investors would be protected. Also Supreme Court has issued notices to the centre and SEBI for their response to Sahara’s plea against the SAT order.