SC admits Sahara plea against Rs 17k cr refund order

The Supreme Court has admitted a plea by Subroto Roy-run Sahara group challenging an order by the Securities Appellate Tribunal, directing two of its companies to refund around Rs 17,400 crore to investors.

The latest relief comes after a 41-day breather given by the apex court to Sahara, putting the said order on hold until January 8, 2012 (yesterday).

SAT had passed the order on the Sahara group’s appeal against Sebi’s June orders, asking the group's firms to return the money collected from investors through OFCDs on the ground of violation of regulatory norms.

The stock market regulator had also restrained the two entities from accessing the securities market for raising funds till payments were made to the satisfaction of Sebi.

The two companies and its promoter, Subrata Roy Sahara, and the directors — Vandana Bhargava, Ravi Shankar Dubey and Ashok Roy Choudhary — were told to refund the collected money.

The company had then approached the Supreme Court which asked it to move the Tribunal.

While dismissing the appeal, SAT had said the market regulator had jurisdiction over such fund-raising schemes.