The Supreme Court on Friday made it clear that market regulator
Securities and Exchange Board of India (Sebi) can take action against the Sahara Group for non-compliance of its directions relating
to refund of Rs 24,000 crore raised from investors through optionally fully convertible debentures (OFCDs).
A Bench comprising justices K. S. Radhakrishnan and J. S. Khehar said that Sebi has the duty to take action according to law for non-compliance of its order.
The
market regulator has moved an application alleging that
the Sahara Group was not complying with the apex court's August 31 directions in which it was also said that the company would provide all information and documents relating to the investors within 10 days.
The Bench declined oral plea and submissions of Sahara seeking extension of time for providing the documents saying for that there is a need for an application containing written submissions.
On August 31, the apex court had directed two Sahara group companies -Sahara India Real Estate Corporation (SIREC) and Sahara Housing Investment Corporation (SHIC) -to refund the amount.
The court had in its observation said: "Sebi can attach properties and freeze bank accounts of the companies if they fail to refund the amount." The court had further directed Sahara to furnish all documents in their custody to the regulator within 10 days.
The court had also appointed one of its retired judges Justice B. N. Aggarwal to oversee the action taken by Sebi.
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