Sahara seeks rectification of SC order (Roundup)

The Sahara Group Wednesday moved the Supreme Court seeking the correction of its order barring the group's head Subrata Roy and its two directors from travelling abroad till it submitted the original title deeds of its assets of Rs.20,000 crore to secure the investors' money that it had to return.

The two companies of the Sahara Group - Sahara India Real Estate Corporation Ltd. (SIRECL) and Sahara Housing Investment Corporation Ltd. (SHICL) - moved the court seeking the correction of the Oct 28 order which said Roy and its two directors will not leave the country without the permission of the court till its directions are complied with.

Two Sahara companies Wednesday moved the court after the apex court asked senior counsel C.A Sundaram to file an application seeking to rectify the alleged error in the order which barred Roy and its two directors from going abroad till they submit original title deeds of their assets valued Rs.20,000 crore to the Securities and Exchange Board of India (SEBI) to cover investors' money.

As Sundaram, appearing for the Sahara Group, mentioned the matter seeking correction in the order, the bench headed by Justice K.S. Radhakrishnan asked him to file a review application.

"File a review," said Justice Radhakrishnan as Sundaram told the court: "Sorry to renew my request (seeking rectification of error)."

"I am not seeking the review. I am only saying that the order dictated (in the court) has been erroneously reported."

"It is a different bench. File an application. Let there be some papers," Justice Radhakrishnan told Sundaram.

The apex court passed its Oct 28 order restraining Roy and two others from travelling abroad taking note of the submission by Sundaram that Roy and its two directors are "willing to make available to SEBI the original title deeds of unencumbered properties, worth Rs.20,000 crore, along with proper valuation reports, within a period of three weeks from today."

The court said: "SEBI, in turn, will examine the same and make their response, which shall be considered by this court on the next date of hearing."

The court further said, "Till the above direction is complied with to the satisfaction of SEBI, the alleged contemnors (respondents) shall not leave the country without the permission of this court."

The court had asked the Sahara Group to submit the original title deeds of unencumbered properties, valued Rs.20,000 crore, along with proper valuation reports, by Nov 11 and directed listing of the matter for further hearing Nov 20.

The offer by the Sahara Group was made in the course of the hearing of contempt petition by SEBI for the failure of two Sahara Group companies to comply with the apex court's Aug 31 order to deposit with the market regulator Rs.24,000 crore along with 15 percent interest so it could be returned to the investors.