Investors approach SC for Sahara refunding
Mumbai- With Sahara being charged with the non-refunding of monies which were collected by the Sahara agents, the investors have moved to the Supreme Court. The SC is all set to hear an application filed by one of the investors who has been seeking directions to Sahara India Real Estate Corporation Ltd for the monies.
The monies were collected by the Sahara agents from the investors with interest. The case which was filed between Sahara India and Sebi stated that investors in the OFCD’s, especially Income Bond, Housing Bond and Multiple Bond was issued by Sahara Housing Investment Corporation Limited.
According to the applicants, before issuing these bonds, both the firms had submitted their Red Herring Prospectus along with the jurisdictional Registrar of Companies. They were further assured with a guaranteed return based on the rate provided on a terms and conditions bond. However, apart from the interest, an option to convert an amount and accrued interest in equity shares of the two companies was provided to the investor. It was further pre-decided while subscribing to the said OFCDs. The investors invested as the conversion into equity will lead to higher returns.
In August last year, a statement was made by the apex court that the scheme feel outside Sebi purview which in turn resulted in the OFCD’s lacking Sebi approval being illegally issued. Likewise, Sahara was directed last year by the SC to refund thousands of crores of rupees to Sebi. The firm had to repay the money for the unpaid investors. Henceforth, the investors who had invested their hard earned money were seeking court intervention to get it refunded.
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Housing Bond and Multiple Bond, Mumbai, non-refunding of monies, Registrar of Companies, Sahara agents, Sahara India and Sebi, Sahara India Real Estate Corporation Ltd
