PATNA HIGH COURT SEEKS SEBI’S RESPONSE OVER NON-PAYMENT OF RS 24,000 CR TO SAHARA INVESTORS

SAHARA GROUP HAS SAID THAT THE FUNDS ARE LYING IDLE WITH THE SEBI IN AN ESCROW ACCOUNT, WHICH WERE SUPPOSED TO BE DISBURSED AMONG INVESTORS OF SAHARA GROUP OF COMPANIES

New Delhi: The Patna High Court has asked the Securities and Exchange Board of India (Sebi) to produce a clarification as to why funds of Rs 24,000 crore deposited by Sahara Group are not disbursed among investors and lying idle with the regulator.

According to the news release by Sahara Group, in its submission to the high court, the company has said that the funds are lying idle with the Sebi in an escrow account, which were supposed to be disbursed among investors of Sahara Group of companies. The market regulator has only repaid about Rs 128 crores to the investors in the past nine years.

Umesh Prasad Singh, senior advocate appearing for Sahara before Patna High Court, on Tuesday said according to the Supreme Court verdict there was no impediment on Sebi from making repayment to the investors of other group companies.

He said that in a writ petition filed before the high court the capital market regulator has undertaken the funds received from Sahara shall be used for repaying all investors. If the repayment is not made, the money shall be given back to Sahara with interest.

“However, despite such undertaking, the Sebi neither paid the surplus funds to the investors nor refunded to Sahara,” Singh said.

The high court has directed Sebi to file its response in writing on or before March 25. The court also directed an officer from the Sebi head office to remain present during the next hearing on March 28.

Source – News ABP Live