SC issues contempt notice to Sahara group's two firms

The Supreme Court on Wednesday slapped contempt notices on two Sahara firms — Sahara India  Real Estate Corporation and Sahara Housing Investment Corporation — for not complying with its order of refunding  around Rs 19,000 crore to investors through SEBI.

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"You must give a definite answer by Tuesday," a bench of Justices KS Radhakrishnan and JS Khehar said while adjourning  the case for July 30 on plea of the companies. The bench also told Sahara group that no further time would be given  to the companies and they must not seek any adjournment in the case.

The bench passed the order on a contempt petition filed by SEBI alleging that the firms have failed to pay the amount within the timeframe fixed by the apex court on December 5. On the last date of hearing on July 17, the apex court had said that Sahara chief Subrata Roy and directors of two group companies will have to appear before it if its order is  not complied with.

The apex court had on December 5 granted nine weeks more time to pay back Rs 24,000 crore with 15 percent interest to over three crore investors in its two companies, with an immediate upfront payment of Rs.5,120 crore.

The balance amount was to be deposited with SEBI in two instalments to be cleared by early February. The first installment of Rs 10,000 crore was to be paid by the first week of January 2013 and the remaining by the first week of February 2013.