August 2, 2013

SEBI's claims on Sahara start crumbling in Supreme Court, as TSI predicted

In April this year, I had written on how various points in a 2012 Supreme Court judgement against the Sahara Group on the basis of an earlier SEBI order were clearly erroneous and went against even Constitutional Acts. (Read the article here http://www.thesundayindian.com/en/story/the-unputdownable/25/47189/). I had titled the article ‘The Unputdownable!’ as an appreciative sobriquet for Subrata Roy Sahara, the Sahara Group Managing Worker, who, despite various attempts by external entities to pull him down – the English media in India included – has come back with exemplary credentials.

First the background to this case and on the face-off that Subrata Roy Sahara has had with SEBI, and in this I liberally refer to my previous article. The Sahara group, which has issued OFCDs (Optionally Fully Convertible Debentures) since the year 2001 with all relevant government permissions, and which has regularly submitted all details as required by the concerned government authorities, suddenly got a prohibitory order from SEBI in November 2010 against the OFCDs issued by two unlisted group companies (Sahara Housing Investment Corporation Ltd. and Sahara India Real Estate Corporation Ltd.) – and this despite the fact that just seven months before that, SEBI had, through its own communication to Ministry of Corporate Affairs, commented that as these were unlisted companies and had not filed a draft red herring prospectus with SEBI, any complaint with respect to these two companies should be handled by the Ministry of Corporate Affairs.

Of importance is the fact that the Ministry of Corporate Affairs, in its written submission to the Allahabad High Court in 2010, mentioned, “The issuance of OFCD [by] the petitioner company after the registration with the Registrar of Companies has been permissible under law. The Central Government remains the regulating authority for the company.” Similar were the notings of the Additional Solicitor General, Mohan Parasaran (who is now Solicitor General), and of the Minister of Corporate Affairs, Veerappa Moily.
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4 comments:

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ankit ostwal said...

क्या महज चंद लोगों की सहारा के खिलाफ कथित शिकायत को आधार बनाकर 12 लाख सहारा कर्मचारियों और उनसे जुड़े औसतन 60 लाख लोगों के भाग्य दांव पर लगा देने ठीक होगा वो भी जब कि सहारा ने कभी भी पैसे देने से इंकार नहीं किया है

Angel Shah said...

You cannot demand for what is not yours or for what that is not justifiable! sebi don't have any damn proof of any of the investors, Sahara have already submitted all the documents, sebi really tried hard to throw jargons on sahara and roy but this futile and lame allegations have now back fired on sebi itself. I have been watching this video on youtube and I got to know the sole story from there only - https://www.youtube.com/watch?v=run-GO2LAS4

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