Sahara claims interest due only till December 2012

Says liability of further interest does not fall on it since it has already paid Sebi

The Sahara group has maintained that it owes its interest only till the end of the last calendar year in a recent communication to the regulator.

“…kindly note that our liability to pay interest on the said amount to the investors shall be limited till December 05, 2012, the day when we had deposited the amount of Rs 5,120 crore (which also includes the interest amount) with Sebi,” it said in a letter to the regulator dated July 22nd.

It said so in a reply to a Sebi query on if a list of 36 investors had been refunded.

An email sent to the regulator did not immediately receive a reply.

“What we have stated is that liability of further interest after 5th December, 2012 shall not fall on Sahara, since Sahara paid Rs 5,120 crore to Sebi for refund to investors but Sebi has not discharged its obligations and committed enormous delay in  making refund to the investors,” said the Sahara group.

The regulator had found that there were irregularities in the manner that the group raised money from investors through the issue of an instrument called an Optionally Fully Convertible Debenture (OFCD).  

The regulator’s view was upheld by the Supreme Court which asked it to return money to investors with 15% interest.

Sahara subsequently deposited a sum of Rs 5,120 crore and claimed that the remainder of the Rs 19,000 crore had already been given back to investors. Authorities maintained that there was insufficient documentary evidence to establish that such a refund had taken place.

Sebi has also reportedly had trouble establishing the genuineness of investors.