Issuing order: Sahara Group accuses Sebi of being vindictive and malicious

Accusing Sebi of being "vindictive and malicious", the Sahara group on Friday said the market regulator should have placed its order before the Supreme Court instead of making it public.

The Securities and Exchange Board of India (Sebi) in its order on Thursday asked the two entities -- Sahara Commodity Services Corp (earlier known as Sahara India Real Estate Corporation) and Sahara Housing Investment Corporation (SHICL) to refund money raised from hybrid instrument OFCD to investors along with an interest of 15 per cent.

The order had further said that the two companies and its promoter Subrata Roy Sahara, and the directors -- Vandana Bhargava, Ravi Shankar Dubey and Ashok Roy Choudhary -- jointly and severally, shall refund the money collected.

"Sebi has been vindictive and malicious towards the Sahara group and this has been apparent from the chain of events, since last one and a half years. Such an act is really not expected from such responsible regulator institution. Of course, it is not Sebi, it is by some wrong people of Sebi," the Sahara group said in response to the order.

For a matter which is sub-judice and pending before the Supreme Court, Sahara said, "media trial is not warranted and not expected from Sebi as is being done in this case."

The order, according to Sebi, was in response to the directives given by the Supreme Court which wanted the regulator to expeditiously hear and decide the case. The order, the regulator had further said, "will be given effect to only after the directions of the Supreme Court."

The Sahara group did not respond to the queries on the quantum of money the two entities had raised through the hybrid instrument Optionally Fully Convertible Debentures (OFCDs) and also the number of investors.