Sahara Group has not submitted original title deeds: SEBI

SEBI Wednesday told the Supreme Court that contrary to its order, two Sahara group companies SIRECL and SHICL have only filed photocopies of the title deeds of their assets.

The assets valued at Rs.20,000 crore are guarantee towards the repayment of Rs.24,000 crore the two companies had collected from investors through optionally fully convertible debentures (OFCD).

The Securities and Exchange Board of India (SEBI) told the bench of Justice K.S. Radhakrishnan and Justice J.S. Khehar that the title deeds' photocopies filed by Sahara India Real Estate Corporation Ltd. (SIRECL) and Sahara Housing Investment Corporation Ltd. (SHICL) were only in part and not complete.

SEBI counsel Arvind Dattar also expressed reservations over the actual value of the assets whose photocopies were submitted to the market regulator.

The apex court, in its Oct 28 order, had directed the two companies to submit original title deeds of their assets to SEBI as a guarantee towards the payment of investors' money amounting to Rs.24,000 crore.

The court by its order had restrained Subrata Roy and the two directors of the companies from leaving the country till the orders were complied with.

However, Nov 1, the court modified its order allowing Roy and the two directors to travel abroad but asked them to ensure their presence in the country Nov 19 if they failed to carry out the court's directives.

Sahara Group was to comply with the court's order by Nov 11.

Sahara has already paid Rs.5,120 crore to SEBI towards the payment of the investors' money. The court said title deeds that Sahara would submit to the securities market regulator would be free of any encumbrance.

As senior counsel Dattar told the court that Sahara had not submitted the title deeds in original, that they were short and did not cover the entire liability, the court adjourned the hearing till Thursday.