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SC to hear Sahara-SEBI case today: Here's the timeline

The Sebi mentioned the matter before a bench headed by Justice Ranjan Gogoi for urgent hearing

BS Web Team 

Sahara-SEBI case
Subrata Roy

The (Sebi) had moved the top court, seeking contempt proceedings against the Sahara Group for allegedly obstructing the process of auctioning its Aamby Valley property in Pune, initiated on court's direction.

The Sebi mentioned the matter before a bench headed by for urgent hearing, saying the Sahara Group has been "obstructing" it by allegedly suspending business.

Here's the timeline for the Sahara-Sebi case:

2010

November: Sebi barred Subrata Roy and two of its – Sahara India Real Estate Corp (SIREC) and Sahara Housing Investment Corp (SHIC) - from raising any capital through the issue of securities.

December: Sahara appealed in the Allahabad High Court, which ordered SEBI not to take any action until a court order is passed.

2011

January: Delhi High Court issued a warrant against Subrata Roy and four other officials of the group on a complaint that it deceived investors in a proposed housing project of Rs 25,000 crore.

February: Delhi HC stays proceedings against Subrata Roy and four other officials of the group on a complaint that it deceived investors in a proposed housing project.

May: Supreme Court asked SIREC to furnish the format of the application for its optionally fully convertible debenture (OFCD) scheme and a list of accredited agents that raised money on the company's behalf.

June: SEBI ordered Sahara firms to immediately refund the money collected through its sale of OFCDs.

October: Securities Appellate Tribunal (SAT), set up by the Supreme Court, ordered two unlisted Sahara group to refund within six weeks about Rs 17,656.53 crore with 15% interest, which it had raised through OFCDs.

November: Sahara moved the Supreme Court against SAT's order and the Supreme Court stayed the SAT order, and asked the 
two to refund Rs 17,400 crores to their investors and asked the details and liabilities of the

2012

January: Supreme Court gives three weeks time to Sahara to choose between options to return investments made by the public in its OFCD scheme. Sahara to either to give sufficient bank guarantee or attach properties worth the amount raised through OFCDs.

May: Supreme Court is informed by senior counsel Fali Nariman of Sahara India Real Estate Corp that Sebi could not have taken up this issue of Sahara Group of raising funds through OFCD as there was no complaint from any investor.

June: Sebi informed the Supreme Court that the real estate division of Sahara India Pariwar had no right to mobilise Rs 27,000 crore from investors through OFCD without complying to the norms of the market regulator.

August: Supreme Court directed Sahara India Real Estate Corporation Ltd (SIRECL) and the Sahara Housing Investment Corporation Ltd 

(SHICL) to refund over Rs. 24,400 crore to its investors.

2014

February: Supreme Court ordered the arrest of Subrata Roy, for failing to appear in court in connection with the Rs 24,000 crore deposits his company failed to refund to its investors as per a Supreme Court order.

March: Subrata Roy, along with two other directors of Sahara, sent to Tihar jail.

August: Sebi had asked the court to appoint a receiver who would sell Sahara’s properties and raise the money. The court has been recovering money from the group in instalments.

October: Revelation was made when only around 4,600 investors in two Sahara group had come forward to claim refunds from Sebi, which had asked those who had purchased bonds issued by the entities to claim their money

2015

March: Supreme Court stated that the total dues from Sahara have gone up to Rs 40,000 crore with the accretion of interest.

July: SEBI cancelled the licence of Sahara’s mutual fund business.

2016

May: Subrata Roy released on parole from Tihar jail.

2017

April: Sebi court had cancelled the non-bailable arrest warrants against Roy and three of his group firms’ directors after they appeared before it in a case filed by the Sebi against them.

May: Roy did not appear before the Sebi court after filing an exemption application on medical grounds. However, the special Sebi court rejected Roy’s plea.

July: On 25 July, the court directed the official liquidator of the Bombay high court to initiate the first two steps of the process to auction Aamby Valley. 

August: SC asks Sahara Group to deposit Rs1,500 crore in a dedicated Sebi account by 7 September, the apex court had clarified that the Aamby Valley auction process would be stopped if the company furnished the payment in time.

Kapil Sibal, counsel for Sahara, had sought more time for the company to deposit the money and told the court that it would submit two post-dated cheques of 11 November to ensure payment. This request was rejected by the court.

The Aamby Valley auction process began on 14 August with the official liquidator inviting bids at a reserve price of Rs 37,392 crore.

First Published: Thu, October 12 2017. 15:14 IST
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