SC takes up Sahara's review petition

The Supreme Court on Tuesday took up a review petition filed by two Sahara group companies seeking a reconsideration of its August 31 order that directed them to return Rs 24,000 crore collected from investors through a bond scheme.

The bench, presided over by K S Radhakrishnan, is reported to have passed a long order, but it was not available officially till late tonight. Review petitions are examined in chambers by the same judges who originally passed the order, without the presence of the parties or their lawyers. Therefore, the content of the order is not available to the public.

Meanwhile, the Sahara companies– Sahara India Real Estate Corp Ltd and Sahara Housing Investment Corp Ltd– approached Chief Justice Altamas Kabir again today and sought a hearing of their application, seeking more time to return the money and several other arguments related the actual money due. The judge did not pass any order, but promised to hear the application in due course.

On December 5, the bench of the chief justice had asked the companies to return the money to investors in two instalments, starting January 5. It also allowed the Sahara companies to deposit Rs 5,120 crore with the Securities and Exchange Board of India (Sebi).

In the past few days, the companies, represented by senior counsel Ram Jethamalani, were pressing for hearing their applications, but had not succeeded.

Normally, when a case is heard and decided by a bench, all related matters should go before the same bench. If that practice is followed, the bench, presided over by judge Radhakrishnan should have heard the subsequent applications of the Sahara companies. However, despite protests from the Sebi counsel, the chief justice had heard the Sahara applications and passed orders.

Sebi has filed a contempt of court petition against the Sahara group for not obeying the August 31 order to return the money to millions of small investors. But it has not yet been taken up. In one of the applications moved by the companies before the chief justice, they have sought a stay on the direction to pay the amounts to Sebi. They say Rs 5,120 crore they had deposited with the market regulator was in excess of the amount needed to secure the investors.