SC notice to two Sahara firms for contempt

 Two Sahara group companies were issued another contempt notice by the Supreme Court on Wednesday for failing to deposit money with SEBI as directed by it to repay Rs 24,000 crore to investors.

A bench of Justices K S Radhakrishnan and J S Khehar sought a definite response from Sahara India Real Estate Corporation and Sahara Housing Investment Corporation by Tuesday as to why no contempt proceedings should be initiated against them.

Both the companies were earlier issued contempt notice for their failure to refund the money by November 30 last as ordered by the apex court.

The fresh notice followed their failure to deposit money with SEBI even after the deadline was extended to February.

A three-judge bench presided over by then Chief Justice Altamas Kabir (since retired) had on December 5 extended the November 30 deadline, granting nine more weeks to pay back Rs 24,000 crore with 15 per cent interest, including an immediate upfront payment of Rs.5,120 crore. The balance amount was to be deposited with SEBI in two instalments to be cleared by early February.

The first instalment of Rs 10,000 crore was to be paid by the first week of January 2013 and the remaining by the first week of February 2013.

According to the SEBI, the group had handed over a draft for Rs 5,120 crore on December 5 but failed to deposit the remaining amount.

The court sought categorical explanation from the two companies before adjourning the case to July 30.