SC slaps contempt notice on Sahara firms

The Supreme Court on Wednesday issued contempt notices to two Sahara Group companies : Sahara India Real Estate Corporation and Sahara Housing Investment Corporation for not complying with its order of refunding around Rs 190 billion to investors through Securities and Exchange Board of India (Sebi).

The notices were issued on a petition by Sebi that had sought initiation of contempt proceedings for not depositing money collected from investors with the market regulator in terms of an order passed by a Bench presided over by Chief Justice of India (since retired) Altamas Kabir which had extended the time of payment.

"You must give a definite answer by Tuesday," a bench of Supreme Court Justices K S Radhakrishnan and J S Khehar said while adjourning the case for July 30 on plea of the companies.

The bench also told Sahara that no further time would be given to the companies and they must not seek any adjournment in the case.

On the last date of hearing on July 17 the apex court had said that Sahara chief Subrata Roy and directors of its two companies will have to appear before it if its order is not complied with.

The apex court had on December 5 granted nine weeks more time to pay back Rs 240 billion with 15 per cent interest to over three crore investors in its two companies, with an immediate upfront payment of Rs 51.20 billion.

The balance amount was to be deposited with SEBI in two instalments to be cleared by early February. The first instalment of Rs 10 billion crore was to be paid by the first week of January 2013 and the remaining by the first week of February 2013.

With PTI inputs