16 November,2023 03:50 PM IST | Mumbai | mid-day online correspondent
SEBI/ File Photo
SEBI chairperson, Madhabi Puri Buch on Wednesday said that in spite of Subrata Roy's passing, the probe in the Sahara case will be continued and that it remains significant for the capital markets regulator, stated a PTI report. According to the report, Buch said that the Sahara matter focuses on the entity's actions and the case shall continue regardless of an individual's physical presence.
Subrata Roy, the founder of Sahara group, died on Tuesday, aged 75 after a prolonged illness.
SEBI chief made the statements while he was talking to the press on the sidelines of the FICCI event. Madhabi Puri Buch told the media, 'the Sahara matter was about an entity's conduct and added that it will continue regardless of whether an individual is there or not'.
He was further questioned about the adequacy of refunds; in his response to the query, Buch noted that the refunds were issued by a Supreme Court-appointed committee and were being allocated following evidence-based assessments of investors' claims.
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Reportedly, Sahara Group was asked to deposit over Rs 24,000 crore with SEBI for further refund to investors however, only Rs 138 crore have been made to investors until now.
The Sahara group has faced numerous allegations, including accusations of operating a Ponzi scheme. Roy's troubles with SEBI began in 2010 when the regulator prohibited two Sahara entities from raising funds through equity markets or issuing securities to the public. Additionally, Roy was restrained from soliciting funds from the public.
Following this, legal troubles only mounted for Roy, who was arrested in 2014, on the orders of the top court after he failed to appear before it in a case pertaining to contempt of court which stemmed from a non-refund of over Rs 20,000 crore to investors by two companies. Although he later got bail, however, the troubles for his various businesses continued.
The two Sahara entities, Sahara India Real Estate Corporation (SIRECA) and Sahara Housing Investment Corporation raised funds in 2007-08 through Optionally Fully Convertible Debentures (OFCD). SEBI, in June 2011, directed these entities to refund the money collected from the investors along with interest.
Subsequent appeals and cross-appeals led the Supreme Court in 2012 to order Sahara to deposit approximately Rs 24,000 crore with SEBI for further investor reimbursements. Sahara contended this, claiming it constituted "double payment" as they had already refunded more than 95% of investors directly.
