Sebi's SC directed actions 'vengeance': Sahara

The business tycoon also fears an I-T raid

In a bizarre statement issued on Friday, Sahara said "an income tax raid" against the group has been "designed and decided."  

It said Sebi was "orchestrating" investigations and action through different ministries and government department against Sahara.

However, Sebi is acting as per the directions of the highest court of the country.

While, the spokesperson called the group as "an organisation which has done immense good for the society", both the apex 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 has also 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.

However, Sahara's statement termed the actions as "vengeance" and wondered over its cause.

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

The Sahara statement said, "The Securities and Exchange Board of India, while acting under the system, has already orchestrated investigation/action through different ministries and government departments against Sahara. What can be said about such negative attitude adopted towards an organisation which has done immense good for the society as well as for the country. It has come to our knowledge, that now, the latest action against Sahara that has been designed and decided, happens to be the ‘Income Tax raid’. The big question that still remains to be answered is why such a vengeance?"