Only SC to hear Sahara group petitions

The Supreme Court on Thursday stayed all  proceedings pending before the Securities Appellate Tribunal (SAT) and the Allahabad High Court on petitions filed by Sahara Group and its chairman Subrata Roy in the wake of verdict directing them to refund Rs 24,000 crore to investors.

A bench of Justices K S Radhakrishnan and J S Khehar also sought to know from the company as to why all the matters relating to its August 2012 direction to two Sahara companies to repay the investors should not be heard by them only. Lawyers representing Sahara and others, including group head Roy, contended that factual disputes in the matter should be left to be adjudged by SAT while challenging market regulator Sebi’s plea to transfer all cases to it.

“We are doing it suo motu. Since the matter is before us and it relates to our judgment, we will decide what to do. We are staying proceedings elsewhere,” the bench said.
As many as four cases are pending before the SAT and one before the High Court. 

Senior advocate Arvind Datar, appearing for the Securities and Exchange Board of India (Sebi), alleged that the Sahara companies were making a “mockery” of the apex court verdict. He pointed out that Roy had claimed before Sebi that his personal assets were worth around Rs 3 crore but in documentation before Punjab National Bank, he claimed his worth to be more than Rs 4,000 crore.Datar also pointed out that records obtained from Sahara showed the name “Anirudh Singh, son of Hukum Singh” appearing 1,433 times and he had been paid 34 times in a day on the pretext of refunding money.

Sebi’s counsel pointed out that Sahara claimed that it had paid Rs 4,748 crore to investors on its own on the pretext of law and order problem, which was in complete contempt of court’s order asking it to deposit money with the Sebi only.
The court posted the matter for further hearing to May 8.