Sahara case continues despite Subrata Roy's demise, says SEBI chief
What's the story
SEBI Chairperson Madhabi Puri Buch has announced, that the Sahara case would persist for the capital markets regulator, even after the demise of the group's founder Subrata Roy. During a FICCI event, Buch told reporters that the issue would continue irrespective of an individual's existence, as it pertains to the behavior of an organization. Roy, the contentious founder of the Sahara group, passed away at the age of 75 on November 14 due to a prolonged illness.
Details
SEBI issued Rs. 138.07 crore in refunds over 11 years
In 2011, SEBI directed Sahara India Real Estate Corporation Ltd, and Sahara Housing Investment Corporation Ltd, to reimburse funds collected from nearly three crore investors, through Optionally Fully Convertible Bonds (OFCDs). The Supreme Court supported SEBI's instructions in 2012, requiring the companies to return the funds with 15% interest. SEBI's most recent annual report reveals that it distributed Rs. 138.07 crore in refunds to investors of these two firms over an 11-year period.
What Next?
Over Rs. 25,000 crore in undistributed funds
Following Roy's death, the undistributed funds amounting to over Rs. 25,000 crore held in SEBI's account have regained attention. Sahara was instructed to deposit an estimated Rs. 24,000 crore with SEBI for additional refunds to investors. However, the group has consistently claimed that it had already directly reimbursed more than 95% of investors.