Sahara Group News: Subrata Roy’s troubles increase, bank and demat accounts will be attached.
New Delhi: Sahara group chief Subrata Roy’s troubles are not taking the name of abatement. SEBI, the market regulating body, has further tightened the noose on Subrata Roy. SEBI has now ordered attachment of bank and demat accounts of Sahara India chief Subrata Roy and three others. This action is being taken to recover a fine of Rs 6.48 crore for violation of regulatory norms by two group companies. These orders have been given by the Securities and Exchange Board of India ie SEBI. According to the report, in its order dated June 27 last year, SEBI observed that two companies forming part of ‘Sahara Group’, Sahara India Real Estate Corporation Limited, now known as Sahara Commodity Services Corporation Limited, and Alternatively issued by Sahara Housing Investment Corporation Limited. These OFCDs were allegedly issued in violation of the Securities and Exchange Board of India Act, 1992, SEBI and other key provisions. SEBI norms were violated in alternate issuance of OFCDs by two Sahara group companies. In this case recovery action has been initiated against these four persons. Apart from Subrata Roy, the bank and demat accounts of Ashok Roy Chowdhary, Ravi Shankar Dubey and Vandana Bhargava have been attached. All banks, depositories and mutual funds have been directed not to allow any debits from the accounts of Sahara India chief Subrata Roy and three others. However credit has been allowed.
Dispute related to two companies of Sahara Group
Sahara scam is mainly related to Sahara India Real Estate Corporation Limited (SIRECL) and Sahara Housing Investment Corporation Limited (SHICL), two companies of Sahara Group. The matter is of September 30, 2009. Sahara Prime City, a company of Sahara Group, filed application (DRHP) with SEBI for its IPO. DRHP contains all the important information related to the company. When SEBI studied this DRHP, SEBI found some mistakes in the process of raising money by two companies of Sahara Group. These two companies were SHICL and SIRECL only. Please tell that Sahara India was started in the year 1978.
Raised 24,000 crores through OFCD
SEBI had received two complaints on 25 December 2009 and 4 January 2010. These said that Sahara companies are issuing Optionally Fully Convertible Debentures (OFCDs) and raising funds by wrong means. These complaints proved SEBI’s apprehensions correct. After this SEBI started investigating these two companies. SEBI found that SIRECL and SHICL have raised around Rs 24,000 crore through OFCDs from 2 to 2.5 crore investors. SEBI ordered both these Sahara companies to stop raising money and asked them to return their money to investors with 15 per cent interest.
