SC gives Sahara time till February to refund investors

In what comes as slight breather for the Sahara Group, the Supreme Court (SC) has allowed the conglomerate to refund Rs 24,000 crore to its investors through installments by February next year. However, SC has asked Sahara to first demand draft of Rs 5,120 crore to be paid immediately.

According to SC order, Sahara will have to repay Rs 17,400 crore plus 15 percent interest in three installments. SC has asked Sahara to pay the first installment of Rs 10,000 crore by first week of January and remaining by first week of February. It has asked Sahara to deposit all documents, including repayment proof to Sebi by December 20. Sebi is also given a free hand in case Sahara defaults on repayment.   

Earlier, the apex court had asked Sahara India Real Estate Corporation Ltd (SIRECL) and Sahara Housing Investment Corporation to refund an estimated Rs 24,000 crore with an annual interest of 15 percent, while Sebi  was directed to facilitate the refund of this money to about three crore investors of the two firms.

The court had asked the companies to furnish the documents related to these investors to SEBI within 10 days and refund the money within three months, failing which the regulator was asked to freeze the accounts and attach properties of the two firms.

The two Sahara group companies had moved the SC on 20 November, the day the three-month deadline ended for refunding Rs 24,000 crore to investors through Sebi. They came with drafts for Rs 5,126 crore to attempt to prove their bona fides as managers of the investors' money.

(With inputs from agencies)