SC to hear Sahara plea against Sebi order tomorrow

The Supreme Court will tomorrow hear the Sahara group firm's plea against the Sebi order to return the money, along with 15% interest, collected from investors through its Optionally Fully Convertible Debentures (OFCD) scheme.

The plea would be heard by a three-member bench headed by Chief Justice SH Kapadia.

Earlier on June 27, a vacation bench of the apex court, comprising Justices P Sathasivam and AK Patnaik, had declined to hear the plea of Sahara India Real Estate Corp and asked to list it before the Chief Justice, who has been hearing the case.

Following the orders of the Supreme Court, the Security and Exchange Board of India (Sebi) had on June 23 directed the two Sahara group firms -- Sahara India Real Estate Corporation and Sahara Housing Investment Corporation -- to refund the money, along with 15% interest, raised through OFCD scheme for violating regulatory norms.

As per the Sebi order, the two companies, promoter Subrata Roy Sahara and directors Vandana Bhargava, Ravi Shankar Dubey and Ashok Roy Choudhary jointly and severally, shall refund the money.

Besides, the regulator has also restrained the entities from accessing the securities market for raising funds, till the time payments are made to the satisfaction of the Sebi.

However, on May 12, the apex court had said that the Sebi directive would not take effect till its further order.

During the last hearing on May 12, the apex court had asked Sebi to proceed with its probe into Sahara group's OFCD scheme by observing that investors may not have any knowledge about these products and might feel cheated like in the Harshad Mehta scam.

The court had also allowed the Allahabad High Court to proceed with its hearing, where the Sahara group has challenged Sebi's direction to give details of its investors.