Mar 28, 2013 09:15 AM IST | Source: CNBC-TV18

Sebi summons Subrata Roy, asks to provide asset details

It is getting really ugly between Securities and Exchange Board of India (Sebi) and Sahara. For Sahara and Subrata Roy the blows just keep on coming.

It is getting really ugly between Securities and Exchange Board of India (Sebi) and Sahara. First, the market regulator on Tuesday summoned Subrata Roy and three other directors of two Sahara Group companies, to personally appear before it on April 10.

If they fail to appear, then Sebi will proceed with selling the seized immovable assets to recover the money due to investors. Later the Himachal Pradesh High Court barred Subrata Roy and several Sahara entities from entering into any transaction in the state, reports CNBC-TV18’s Malvika Jain.

On April 10, Subrata Roy along with three directors of two Sahara real estate firms - Vandana Bhargava, Ravi Shankar Dubey and Ashok Roy Choudhary will have to appear in person before Sebi, said Sebi's order. 

This is for the purpose of finalising the terms of sale of their immovable properties to recover Rs 24,000 crore which are payable to three crore investors, who had subscribed to optionally fully convertible debentures that had been issued by Sahara Group firms.

The order adds that if these four people do not appear in person then an ex-parte order is going to be passed and the terms of sale are going to be finalised. These people have also been asked to submit details of their personal assets by April 8.

There is also a parallel hearing going on before the Securities Appellate Tribunal (SAT) where Subrata Roy Sahara and these three directors have challenged the attachment of their personal properties.

Meanwhile, the order passed by Himachal Pradesh High Court has named five parties who have been barred from entering into any banking transactions and raising any deposit from the public.

These include Subrata Roy Sahara in person and four firms - Sahara India Parivar, Sahara Credit Co-Operative Society, Sahara Q Shop Unique Product Range and Sahara Q Gold Mart.

The order also states that banking transactions can be undertaken by these five parties only with prior approval from Sebi and Reserve Bank of India (RBI).

The petitioner in his petition has alleged that these firms of the Sahara Group were involved in money laundering and diverted money abroad to build hotels. The enforcement directorate has also been directed by the Himachal Pradesh High Court to conduct investigation into this matter.

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