Enforcement officials allege Sahara's role

In a contempt petition filed in the apex court, it was further alleged that Sahara Group of Companies has been involved in alleged violation of the Foreign Exchange Management Act (FEMA) to the tune Rs 150 crore. “It is submitted that during the course of investigation with regard to one of the licensee M/s S-Tel Ltd, that was issued a Unified Access Service (UAS) licence, facts came to the notice of ED that one M/s Sahara India Investment Corporation, a Sahara group company, now known as M/s Sahara Prime City Ltd, had invested Rs 14 crore on September 28, 2007 on which date, M/s S Tel had applied for 16 more licences,” the petition filed by the ED officer alleged.

“There is yet another Sahara group company by the name of Sahara India Commercial Corporation Ltd based in Mumbai, which has purportedly paid Rs 9.5 crore on July 6, 2007 to one M/s Sky City Foundation Ltd as an advance. This Sky City Foundation has in term invested the very same money with M/s S-Tel, just before the date of application of Ms S-Tel made to the DOT for issuance of Universal Access Service (UAS) licence on July 9, 2007,” it alleged.

These allegations surfaced  in the petition filed to seeking initiation of contempt proceedings against Sahara group CEO Subrata Roy and others.