Sebi’s repayment to Sahara investors amounts to Rs 129 crore; the balance of reimbursement accounts is Rs 23,000 crore
In the absence of claims from a large majority of bondholders of the two Sahara companies, who were asked to return the money to nearly 3 million investors with interest in August 2012 through a Supreme Court order, the total amount reimbursed by Sebi has increased by roughly Rs 14 crore in the last fiscal year 2020-21, while the balance of Sebi-Sahara reimbursement accounts has increased by over 1,400 Rs crores during the year.
In its latest annual report, the Securities and Exchange Board of India (Sebi) said it had received 19,616 requests as of March 31, 2021, involving a total of reimbursement requests of nearly Rs 81.6 crore. Of this total, he issued repayments in 16,909 cases (Rs 129 crore, including Rs 66.35 crore in capital and Rs 62.34 crore in interest), while 483 requests (involving more than Rs 2.3 crore ) have been returned to investors to correct the discrepancies.
While seven requests were classified in the contentious category, 332 requests are pending with Sahara, 122 are pending with Sebi and 2,487 cases have been closed for reasons such as the lack of response from investors and the lack of records), the regulator said.
In her previous update, Sebi estimated the total amount reimbursed by her as of March 31, 2020 at Rs 115.2 crore (regarding 15,140 claims). The number of contested cases at that time was much higher at 229, while the number of closed cases was less than 1,688.
Sebi further stated that, in accordance with various orders issued by the Supreme Court and garnishment orders issued by the regulator, a total amount of Rs 15,473 crore has been recovered by her as of March 31, 2021.
“These sums as well as the interest resulting therefrom after having provided for the redemptions to the bondholders were deposited in various Nationalized Banks under the terms of the judgment of August 31, 2012 of the Supreme Court. As of March 31, 2021, the total amount deposited in these banks is Rs 23,191 crore, ”Sebi said.
This amount stood at Rs 21,770.70 crore as of March 31, 2020.
Reacting to Sebi’s latest update, the Sahara Group said by its own estimate that the money deposited into the Sahara-Sebi account, including interest, should be around Rs 25,000 crore and has alleged that Sebi “unreasonably holds 25,000 crore rupees of silver from the Sahara and its investors”.
Referring to various rounds of newspaper advertisements given by Sebi over the years to invite reimbursement requests, Sahara said the regulator made it clear in the latest announcement that it would not accept any further requests received after July. 2018.
“This means that for Sebi there are no more claimants to pay and that the entire 25,000 Sahara crores deposited by her is unreasonably held by Sebi and must be returned to the Sahara. Sahara has handed over all documents originals concerning its 3 crore of investors in Sebi nine years ago for verification and in accordance with the directives of the Supreme Court, this amount of Rs 25,000 crore will finally return to the Sahara ”, he declared in a press release.
The group further said it was “unfortunate and unacceptable” that Sebi kept the funds deposited by Sahara.
“This huge amount of money is unused, unused in the banks, which not only harms the interests of the Sahara as a commercial organization, but also hinders the economic growth of our country, especially in these difficult times of economic downturn. “, he added.
Sebi had ordered Sahara India Real Estate Corporation Ltd (SIRECL) and Sahara Housing Investment Corporation Ltd (SHICL) in 2011 to repay the money collected from investors through certain bonds known as optionally fully convertible bonds ( OFCD) after the regulator ruled that the funds were being raised by the two firms in violation of its rules and regulations.
After a long process of appeals and cross-appeals, the Supreme Court confirmed on August 31, 2012 Sebi’s instructions asking the two companies to repay the money collected from investors with 15% interest.
Sahara was eventually asked to deposit around Rs 24,000 crore with Sebi for an additional reimbursement to investors, although the group has always argued that this amounts to a “double payment” as it had already reimbursed more than 95% of the money directly. investors.
In his annual report for 2020-2021, Sebi said his actions in the case are overseen by (retired) Judge BN Agarwal, appointed by the Supreme Court in this case and that details are provided in the report of situation filed in the Supreme Court from time to time. time.
As of March 31, 2021, Sebi had filed 22 progress reports in the Supreme Court in this case.
The Sahara Group, in its statement, said it has always built its businesses by productively channeling the human capital spread across India and bringing jobs and work to people’s doorsteps.
“In this way, Sahara provides bread and butter to over 14 lakhs in their own villages and towns. It is the second largest human capital in the country after Indian Railways. This amount could have been used by the organization to generate more jobs. and work and helped the country and therefore its economy, ”he added.