Sebi not serious about refunding money deposited with it: Subrata Roy

Sahara Group chief Subrata Roy, who has been at loggerheads with the Securities and Exchange Board of India (Sebi) over refunding an estimated Rs 24,000 crore to more than three crore investors, was questioned by officials of the market regulator regarding his assets and those of three other top executives of the conglomerate at the Bandra-Kurla complex in Mumbai on Wednesday.

Roy, who was with the officials for about an hour, said after the meeting that he had submitted his list of assets to Sebi.

Roy, who also alleged that Sebi is not serious about returning Rs 5,120 crore deposited with it by Sahara to the investors, said that he was not even offered tea during the meeting.

"I was asked whether we have any assets apart from the one (already) disclosed and whether I wish to add anything. I replied saying the assets which I declared are the only ones I have," said Roy.

The Sahara boss claimed that his assets include gold jewellery worth Rs 3 crore, Rs 34 lakh in cash and bank balance and fixed deposits worth Rs 1.59 crore. He further claimed to have taken advance of Rs 11 crore for buying sugar mills at Badauli, Uttar Pradesh, and that he has no immovable property in his name.

The ongoing battle is over Sahara companies Sahara India Real Estate Corporation (SIREC) and Sahara Housing Investment Corporation Limited (SHICL) selling bonds to the investors to raise Rs 25,000 crore, which came under Sebi's scanner in 2010.

"I told them about my concern that those who are yet to get the money... in the last seven months, you have not taken any initiative. Where is the money that can be distributed to the investors? Not just that, you have also not taken any efforts to verify the investor details as well," said Roy.

The Sahara group chairman said when he asked when the investors would get their money back, Sebi officials had no reply.

"I have requested them to kindly look into these two things - verification and paying the investors their money back - seriously. Until the verification is complete, our money would be stuck with them. Sebi is not taking any action on that front. Start the verification so that the money can be released/ distributed," said Roy.

Sebi is dragging its feet on the issue, Roy added.

"Those who have not got the money their money is with Sebi while those who have received payment have got it from the company. I don't want to talk of refunds now. Now, Sebi should refund the money on a priority basis. Sebi should give priority in repayment to those who have not been paid for the last seven months but is sitting quiet."

Roy alleged that Sebi is on a witch-hunt against him and instead of giving funds to investors, it is indulging in a media trial.

"They are involved in a media trial and doing all kinds of things day and night," said Roy.

Meanwhile, the economic offences wing (EOW) of the Mumbai police has started a preliminary inquiry in to allegations that the Group has been intimidating its investors. Sources in the EOW confirmed that an inquiry has started.

According to sources, the chief secretary has been forwarded letters written by investors, who have claimed that they are being intimidated by Sahara.

In association with Mail Today