Sebi manages to refund Rs42.42 crore to Sahara bondholders

Sebi said as on 3 June, 2015, the regulator has received 10,456 applications and made refunds with respect to 7,296 applications for an aggregate amount of Rs.42.42 crore


Sebi said it had constituted a special enforcement cell to handle work related to the matter of Sahara India. Photo: Reuters
Sebi said it had constituted a special enforcement cell to handle work related to the matter of Sahara India. Photo: Reuters

Mumbai: The Securities and Exchange Board of India (Sebi) on Friday said it has refunded Rs.42.42 crore to investors as on 3 June who had invested in the illegally issued optionally fully convertible debentures or OFCDs by two Sahara Group firms—Sahara India Real Estate Corp. Ltd (SIRECL) and Sahara Housing Investment Corp. Ltd (SHICL).

In its annual report for 2014-15 released on Friday, Sebi said as on 3 June, 2015, the regulator has received 10,456 applications and made refunds with respect to 7,296 applications for an aggregate amount of Rs.42.42 crore, which included an interest of Rs.18.04 crore.

Sebi had initiated refunds to Sahara investors in 2013. On 31 August, 2012, the Supreme Court directed Sebi to recover around Rs.24,000 crore from the two Sahara Group firms and refund the money to investors.

In its latest annual report, Sebi said it had constituted a special enforcement cell to handle work related to the matter of Sahara India.

The case dates back to 2011 when Sebi found the two Sahara group firms to have illegally issued OFCDs in 2008, collecting around Rs 25,000 crore from 30 million investors.

Sahara has filed a defamation case in a Patna court against Mint’s editor and some reporters over the newspaper’s coverage of the company’s dispute with Sebi. Mint is contesting the case.