Sebi vs Sahara: Will SAT dismiss Subrata Roy's plea again?

The final hearing on Subrata Roy’s plea is going to take place on Saturday at the Securities Appellate Tribunal (SAT). This is after market regulator Securities and Exchange Board of India’s (Sebi) attachment order on Subrata Roy’s bank accounts and other assets came, along with those of two group firms and their top executives.

The matter relates to a Supreme Court direction ordering refund of more than Rs 24,000 crore of investors’ money that was raised by two Sahara group firms earlier, reports CNBC-TV18’s Ashmit Kumar.

Also read: Sahara's Subrata Roy defiant despite SEBI's harrying

The hearing is likely to be a lengthy process given that SAT over the last few months has shown a tendency towards reserving of verdict, but urgency has been sought by Sahara. SAT did oblige by first hearing them at Delhi, with the presiding officer PK Malhotra hearing the matter and now is first day of the final hearing.

Sahara is yet to finish its argument and they have raised some very pertinent issues, which their lawyer and their counsellor have been claiming. For one, they say that whenever a case of personal liability is made out, the February 13th order not only attached the assets and bank accounts of the two companies concerned, but it also attached the accounts of Subrata Roy, as well as three other directors.

This petition has been filed by Subrata Roy where he has challenged the attachment and freezing of his personal bank accounts.

Moreover, looking at it from a technical perspective there are options such as filing of a review petition, filing of a curative petition, so there are legal ways and means of still tackling the issue as far as Sahara is concerned. However, the view is that the number of times Supreme Court has taken, it has reprimanded the Sahara on various occasions for not complying with its order.

There have been two Supreme Court orders, which in very clear terms had directed Sahara to file Rs 17,400 crore plus the 15 percent interest. Sahara has refused that and it has shot back through massive advertising campaigns, even challenging the Sebi chief UK Sinha through a televised debate arguing that the money has already been refunded. Their claim has so far been that they have refunded Rs 5,120 crore and that should be more than enough to meet any outstanding liabilities.

This points that Sahara has taken a tough stand. They do have a few legal ways and means, but it will be a tough road ahead should SAT dismiss this plea once again.