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Patna HC seeks SEBI reply regarding payments to Sahara’s investors

It also directed that a “responsible officer” from the market regulator’s head office at Mumbai be present in the court on March 28 to answer all the questions posed by it.

IANS | New Delhi |

The Patna High Court has directed Securities and Exchange Board of India (SEBI) to file its response, in writing on or before March 25, on the matter pertaining to repayment to Sahara’s investors.

It also directed that a “responsible officer” from the market regulator’s head office at Mumbai be present in the court on March 28 to answer all the questions posed by it.

In a written response in pursuance of the summons issued by the high court, senior advocate Umesh Prasad Singh, appearing for Sahara, on Tuesday told high court that more than Rs 24,000 crore have been lying idle with the SEBI but the investors of Sahara Group companies have not been paid by the capital market regulator.

“SEBI has made repayment to the investors only about Rs 128 crore in the last nine years. There is no bar in the order passed by Hon’ble Supreme Court that SEBI will not make repayment to the investors of other Group Companies,” Sahara India Pariwar said in a statement on Wednesday.

Besides, Singh argued that there is no impediment or order passed by the Supreme Court or any other courts restraining SEBI from making repayment to the investors of the other companies or societies, other than the said two Sahara companies which are frozen by the apex court.

He also stated that a writ petition was filed before Lucknow High Court, the SEBI has itself undertaken that money received from Sahara shall be used for making repayment to all investors including that of the Sahara ‘Q Shop’ venture.

“However, in spite of such undertaking of SEBI and a clear order of Hon’ble Supreme Court dated December 5, 2012 that the surplus amount shall be refunded by SEBI to Sahara, SEBI has neither paid to the investors nor made refund to Sahara,” the statement said.

“As such there are only course open for SEBI is to either refund the entire amount to Sahara or make repayment to the investors.”