SAT to hear Sahara appeal tomorrow on deadline extension

The appeals were filed about a month ago by Sahara Housing Investment Corporation Ltd and Sahara India Real Estate Corporation Ltd

Securities and Appellate Tribunal (SAT) will hear tomorrow an appeal by two Sahara group firms, which had sought extension in time for submission of documents related to their bondholders to market regulator Sebi.

The appeals were filed about a month ago by Sahara Housing Investment Corporation Ltd (SHICL) and Sahara India Real Estate Corporation Ltd (SIRECL).

As per the information available with SAT, the appeals by the two companies are listed for tomorrow for "admission".

Incidentally, a deadline set by the Supreme Court in its order dated December 5 for submission of investor documents by the Sahara group to Sebi, also expires tomorrow.

The two companies had also filed another appeal on November 19 for allowing deposit of money with the registrar of SAT. However, this appeal was dismissed by the tribunal on November 29.

Thereafter, the two companies had approached the Supreme Court against the SAT order. After hearing their appeal, the Supreme Court on December 5 directed the two companies to refund the outstanding payments to the investors with 15 per cent interest in phases in nine weeks.

While the companies were asked to make an immediate payment of Rs 5,120 crore, the court also asked them to pay the first instalment of Rs 10,000 crore by the first week of January and the remaining by the first week of February.

The bench headed by Chief Justice Altamas Kabir also directed Sahara Group to supply the documents relating to investors within 15 days and warned that failure to fulfil its directive on payment of the money to SEBI will lead to attachment of assets.

As per an earlier Supreme Court order dated August 31, the two companies were asked to submit the investor documents by November 10, while the money was to be refunded to the investors within three months.