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SC directs Sahara Group to provide details on OFCD scheme

SC directs Sahara Group to provide details on OFCD scheme
PTI
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First Published: Mon, May 09 2011. 03 09 PM IST
Updated: Mon, May 09 2011. 03 09 PM IST
New Delhi: The Supreme Court on Monday directed Sahara India Real Estate to furnish the format of the application for an OFCD scheme and a list of accredited agents raising money on its behalf after the firm claimed it was not liable if investors provided false address and other details.
A three-judge bench headed by Chief Justice S. H. Kapadia directed the Sahara Group firm to submit the format of the investment scheme and the list of its agents by Thursday.
“The petitioner is directed to furnish a format of its investor form on which they are supposed to apply for OFCDs (Optionally Fully Convertible Debentures). They would also give a list of accredited agents,” the bench said.
The issue pertains to market regulator Sebi’s demand that Sahara India Real Estate Corporation share details of the investors in the OFCD scheme. Sahara Group had opposed Sebi’s demand.
The apex court’s direction came after senior advocate Soli Sorabjee appearing for Sahara Group, informed the Court that the investors have given wrong details regarding their residential address and other necessary information and the company cannot be liable for that.
However, this was opposed by the counsel representing Sebi, submitting that Sahara still has not given the required information regarding the investors that have invested in its schemes.
The bench also said that it will go into the concept of OFCD and which law of the country governs it.
“You have to explain the concept of OFCD and how the investors are coming and investing in it,” the bench said.
On 2 May, the apex court had adjourned the matter for a week after the group’s investment arm, Sahara India Real Estate Corporation, sought time to file documents.
The high court had dismissed the Sahara Group’s plea to vacate its earlier order, which allowed Sebi to collect information on two of its OFCD schemes.
On 29 April, the court said the group had not complied with its order to provide the required information for Sebi.
Two entities of Sahara Group -- Sahara India Real Estate Corporation Ltd and Sahara Housing Investment Corporation Ltd -- were raising money from investors through OFCDs.
Market regulator Sebi had asked Sahara to share investor details, which was opposed by Sahara.
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First Published: Mon, May 09 2011. 03 09 PM IST
More Topics: SC | Sahara Group | OFCD | Real Estate | Money |