Sahara gets SC stick for not refunding Rs 24,000 crore

The Supreme Court on Wednesday pulled up Sahara group for not refunding Rs 24,000 crore to investors and 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.

A bench of justices K S Radhakrishnan and J S Khehar also came down heavily on Securities Appellate Tribunal (SAT) for restraining SEBI from taking coercive action against Sahara as ordered by the apex court.

The bench, which said that Sahara group must refund the amount by August 31 or face personal appearance, however, refrained from passing orders as the counsel for Roy pleaded that no such order be passed without hearing him and posted the case for hearing on July 24.

"Comply with our judgement or we will pass orders. Pay the amount or face personal appearance before the court," the bench observed, while expressing displeasure over Sahara group not depositing Rs 24,000 crore with SEBI which will disburse the amount to around three crore investors.

The apex court had on August 31 last year directed the Sahara group to refund the amount by November end. The deadline was further extended and companies were directed to deposit Rs 5120 crore immediately and Rs 10,000 crore in first week of January and remaining amount in first week of February. Sahara has so far deposited Rs 5,120 crore with SEBI.

The bench also restrained other courts and tribunals, including SAT from passing any order in the matter.