SEBI moves Supreme Court against Sahara India Real Estate Corporation, Sahara Housing Investment Corporation

The Securities and Exchange Board of India (SEBI) has moved the Supreme Court against Sahara India Real Estate Corporation and Sahara Housing Investment Corporation over Rs 62,602 crore collected by these companies from the public. The market regulator wants the contemnors to be taken into custody if they fail to deposit the amount in the SEBI-Sahara refund account.

SEBI is seeking an order from the apex court to direct the two firms to deposit Rs 62,602 crore in the SEBI-Sahara refund account. The SEBI plea says that if the parties fail to deposit the said amount, then the contemnors or parties held in contempt of court should be taken into custody.

A copy of the petition filed by SEBI in the Supreme Court has been reviewed by Moneycontrol.

SEBI has moved the apex court on November 18 for recovering the full liability amount from Sahara's two companies as per the order issued by the top court in 2012.

Sebi petition says that "contemnors are in gross violation of various orders passed by the apex court regarding entire monies collected with interest. However, contemnors have, till date neglected and failed to comply with various orders passed by this court".

Sahara group chairman Subrato Roy, the promoter of these companies, is currently out on bail and the market regulator wants him to be taken in custody if the firms fail to return the amount to the bondholders.