Hard to believe Sahara refunded money to investors: SC

The Supreme Court (SC) today said it is “extremely difficult” to believe Sahara group’s contention that it had refunded Rs 22,000 crore to its investors even before an order was passed directing its firm to deposit Rs

24,000 with SEBI.

Sahara group, which faced tough time in convincing the apex court that it had refunded the amount to its investors, submitted its two firms Sahara India Real Estate Corp Ltd (SIREC) and Sahara India Housing Investment Corp Ltd (SHIC), along with their directors and promoter Subrata Roy, is not liable for contempt.

“It is extremely difficult to believe. We would accept the statement right now if you show that you had filed affidavit regarding this before SEBI, SAT or in Supreme Court when the case was being heard,” a Bench of justices K S Radhakrishnan and J S Khehar said.

The remarks by the Bench came after Ram Jethmalani, appearing for one of the Sahara Group firms, submitted that around Rs 22,000 crore had already been redeemed to the investors before the refund order was passed by the apex court on August 31 last year.

Jethmalani contended there is no wilful disobedience of the court’s order in not refunding the amount as it has no means to pay.

He said banks have also refused to give us loan for refunding the money.

“Lack of means has been created because of the way the SC order has been interpreted by SEBI, he said adding “banks refused to give us loan and a perception has been created we have taken away thousands of crore of investors’ money.”

The arguments remained inconclusive and the case was adjourned to August 26.

The court was hearing three contempt petitions filed by SEBI against Roy, the two firms and their directors.