SEBI freezes bank accounts of two Sahara group firms
Market regulator Securities Exchange Board of India (SEBI) ordered freezing of bank accounts and attachment of properties of two Sahara group firms – Sahara Housing Investment Corporation Ltd (SHICL) and Sahara India Real Estate Corporation Ltd (SIRECL), and top executives, including its chairman Subrata Roy for failing to refund more than Rs. 24,000 crore to investors.
What is the case?
In August 2012 decision the apex court had ruled that finance schemes run by SIRECL and SHICL who raised Rs. 6,380 crore and Rs. 19,400 crore respectively from bondholders were illegal and ordered it to repay as much Rs. 24,000 crore to up to millions of investors
In December 2012, the court allowed the company to pay the money in three instalments, including an immediate payment of Rs. 5,120 crore, followed by an installment of Rs. 10,000 crore in the first week of January 2013, and the remainder by the first week of February 2013. In a latest development, the Supreme Court allowed SEBI to freeze accounts and seize properties of Sahara group’s two companies for defying court orders