Investors told not to yield before Sahara pressure

Sebi says it has received complaints against the companys agents

The Securities and Exchange Board of India (Sebi) on Saturday issued a public warning to bond holders of two Sahara companies, Sahara India Real Estate Corp Ltd (SIRECL) and Sahara Housing Investment Corp Ltd (SHICL) and advised them against yielding to any pressure from “Saharas or their agents” for switching over their investments to other group companies.

The Sebi notice said that it had received complaints from investors that they were being forced by Sahara agents to forcefully switch to some of its other schemes like the retail scheme Sahara Q Shop Unique Products Range Ltd, Sahara Credit Cooperative Society Ltd, etc. In August, the Supreme Court had directed SIRECL and SHICL to refund investors’ money worth Rs 24,000 crore within three months with 15 per cent interest per annum for violating norms in raising funds from the public.

In the notice titled ‘Don’t be forced!!! Don’t be misguided’, Sebi has asked investors “not to yield to any pressure from any person, including Saharas or their agents, for converting or switching over their existing investments in the bonds to any of their schemes...”
The apex court had said that if SIRECL and SHICL fail to refund the amount, then Sebi can attach properties and freeze bank accounts of these companies.

“The Saharas have not submitted the relevant documents to Sebi, as per the order of the honourable Supreme Court,” the Sebi notice said and pointed out that “some investors have also complained that their investments have been switched over to said schemes of Sahara Group Companies without their consent”.