Sahara fears I-T raid at Sebi's behest

The Sahara Group today accused the capital market regulator, Sebi, of "orchestrating" investigations and action through different ministries and government departments against it.

"It has come to our knowledge that the latest action against Sahara designed and decided happens to be the 'Income Tax raid'. The big question that still remains to be answered is why such a vengeance?" Sahara said.

Sebi's recent actions have been in line with the directions of the Supreme Court.

Both the Supreme Court and the Securities Appellate Tribunal have upheld a June 2012 Sebi order which found two group companies - Sahara India Real Estate And Sahara Housing Invest -guilty of raising funds illegally. The chief justice of the apex court had last month dismissed subsequent appeals by the Sahara Group.

Sebi's recent steps, including an an order to attach assets of the two firms to cover for the Rs 24,029 crore to be refunded to 29.6 million investors and intimating various government departments have followed a rap by the Supreme Court for not taking enough steps to effect the refund.

Though Sebi does not have powers to give any direction to other government departments such as the I-T department, which comes under the finance ministry, it has the right to share information, if and when, it feels necessary and appropriate, said legal experts.