Sahara says money deposited with Sebi about Rs 11,500 cr now

As its legal battle with Sebi continues over refund of money to investors, Sahara group today said the money deposited with the regulator has grown to about Rs 11,500 crore after including bank interest.
"By the time our Chairman (Subrata Roy) shall come out, that is, when full bail amount is paid, our money lying with Sebi will be Rs 18,000 crores cash," the group said in a a press release while referring to additional proposals already made by it with regard to loan-transfer arrangements relating to some foreign properties.
"Since no bank is ready to give Bank Guarantee to us without 100 per cent cash margin, it is going to be Rs 18,000 crores of cash with Sebi," the group said, while adding that the regulator on the other hand had to pay only Rs two crore as refund to investors in the last 26 months.

Referring to Sebi's two advertisements in newspapers inviting refund claims from investors, the group claimed that the regulator has received demand applications for Rs 20 crore only so far.
"A question can now arise that whether the investors exist or do not exist; meaning, are these all fictitious accounts? Only verification can clarify this point, as mandated in Hon'ble Court's order of 2012.
"Since then, in almost past 26 months, Sebi has not started verification for the reason best known to them," it added.

The group further said that the issue of "fictitious account" needs to be understood in the context of the RBI's order and the process followed by the banking regulator with regard to Saharas.

"Between 2008 and 2012, on RBI's order, Sahara paid back Rs 18,000 crores under the command of RBI's two Statutory Auditors and 3 RBI nominated Directors.
"The bank account of that amount was controlled by the RBI. A strict rule was followed that when RBI auditors finally checked the identity of all investors (KYC), only then the next months' payments were allowed by the RBI and during the process, in 4 years, RBI did not find any fictitious account, not even one," it added.