Sahara Group latest news: Sahara Group chief Subrata Roy and his two companies fined Rs 12 crore, know what is the matter
New Delhi: Markets regulator SEBI (SEBI) has decided to sell two Sahara Group companies Sahara Commodity Services Corporation Ltd. and Sahara Housing Investment Corporation Ltd. Along with Subrata Roy and three others have been fined Rs 12 crore. The penalty has been imposed for violation of regulatory norms in issuance of voluntarily fully convertible debentures in 2008 and 2009. Ashok Roy Chowdhury, Ravi Shankar Dubey and Vandana Bhargava are also among the persons who have been fined by the Securities and Exchange Board of India (SEBI). The penalty amount has to be deposited jointly within 45 days.
This case is related to Sahara India Real Estate Corporation Ltd. (now Commodity Services Corporation Ltd.) and Sahara Housing Investment Corporation Ltd. linked to Voluntary Completed Conversion Debentures (OFCDs) issued by Both the companies had issued OFCDs in 2008 and 2009. This allegedly violated SEBI’s ICDR (Capital and Disclosure Requirements) Regulations and PFUUP (Prevention of Fraudulent and Unfair Trade Activities Rules) rules.
Violation of SEBI Laws
In 2012, the Supreme Court ruled that Sahara Group companies violated SEBI laws and illegally paid over $3.5 billion. The companies said that money was raised from lakhs of Indians who could not avail banking facilities. Pankaj Choudhary, Minister of State for Finance, in a written reply to a question in Lok Sabha recently, said that Sahara India Real Estate Corporation Limited (SIRECL) raised Rs 19400.87 crore from 232.85 lakh investors and Sahara Housing Investment Corporation Limited (SHICL) from 75.14 lakh investors. 6380.50 crore was collected.
SEBI could not trace the investors and when the Sahara group companies failed to pay, the court sent Rai to jail. He has spent more than two years in jail. He is on parole since 6 May 2017. For the first time he got parol in the name of attending the funeral of his mother, which was later extended.
