India

SC warns Sahara, denies extra time for depositing cheque

06 Jul 2017 | By Roma Das
SC won't extend deadline for payment to Sahara

The SC refused to extend the July 15 deadline to Sahara group's Chief Subrata Roy Sahara to pay Rs. 552 crore.

The Sahara has paid SEBI Rs. 1,500 crore but sought an extension to pay another Rs. 552 crore.

Advocates Kapil Sibal and Mukul Rohatgi who are arguing for Sahara's case said that Sahara was committed to pay but it needed some time.

In context: SC won't extend deadline for payment to Sahara

06 Jul 2017SC warns Sahara, denies extra time for depositing cheque

Sahara's argumentsWill give roadmap for full repayment: Advocates to SC

Advocates Kapil Sibal and Mukul Rohatgi arguing Sahara's case, pleaded before the SC saying Sahara had kept its promise to deposit Rs.1500.4 crore by June 15 and was only seeking a month's time to honour Rs. 552 crore cheque.

Both advocates requested the SC for a month's time and said till then they'd present roadmap for full repayment of dues worth Rs. 9,000 crore.

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Strict action will be taken on failure to repay: SC

Judges' contextStrict action will be taken on failure to repay: SC

The Supreme Court judges bench of Justices Dipak Misra, Ranjan Gogoi and A K Sikri refused to budge and said that Sahara will have to face consequences if it fails to pay Rs. 552 crores by July 15.

It stated that if Sahara dishonours its commitment, like it did on April 27 and June 19, then Sahara chief could be back in jail.

StatementSC's order to SEBI

The Supreme Court ordered SEBI to produce the cheque for Rs. 552 crore in bank for encashment on July 15 itself.

It also said action on proposed auction of Aamby Valley property will depend on whether Rs. 552 crore cheque is honoured on July 15.

If the Rs. 552 crore cheque passes, then Sahara will be asked to clear dues of Rs. 9,000 crore.

Sahara's embezzlementSEBI vs Sahara: What happened exactly?

In 2014, Subrata Roy failed the court's order of 2012 to return Rs. 24,000 crore to their investors by their two group companies.

The Sahara chief was arrested and sent to jail along with two Sahara directors for the fraud.

SEBI had then asked the court to appoint a receiver who would dispose of Sahara's domestic and offshore properties, and raise the money.