Investors move SC for refund from Sahara
MUMBAI: The Supreme Court will hear an application filed by Roshan Lal Maurya and others who are seeking directions to Sahara India Real Estate Corporation Ltd to refund monies collected by Sahara agents from investors with interest.
Maurya and others who have filed an application before the SC in the matter between Sahara India and Sebi, said they were the investors in the OFCD's namely Abode Bond, Real Estate Bond and Nirman Bond issued by Sahara India Real Estate Corporation Limited or the Housing bond, Income Bond, Multiple Bond issued by Sahara Housing Investment Corporation Limited.
The applicants said that prior to the issue of these bonds, the two companies had submitted their Red Herring Prospectus with the jurisdictional Registrar of Companies. They were assured a guaranteed return at the rate provided in the terms and conditions of the bond and apart from the interest the investor had an option to convert their invested amount and accrued interest, at their sole option, in the equity shares of the said two companies, at the conversion rate which was pre-decided at the time of subscribing to the said OFCDs. Conversion into equity would enable higher returns due to which the investors invested.
However, last August the apex court had held that the scheme fell outside the purview of Sebi and as a result the OFCD's were lacking Sebi approval and illegally issued.
Last December the SC had directed Sahara companies to refund thousands of crores of rupees to Sebi, who upon verifying the investors and the invested amounts, were to ultimately refund their money to the unpaid investors.
The investors said they had invested their hard earned money and are now seeking court intervention to have it refunded.
Maurya and others who have filed an application before the SC in the matter between Sahara India and Sebi, said they were the investors in the OFCD's namely Abode Bond, Real Estate Bond and Nirman Bond issued by Sahara India Real Estate Corporation Limited or the Housing bond, Income Bond, Multiple Bond issued by Sahara Housing Investment Corporation Limited.
The applicants said that prior to the issue of these bonds, the two companies had submitted their Red Herring Prospectus with the jurisdictional Registrar of Companies. They were assured a guaranteed return at the rate provided in the terms and conditions of the bond and apart from the interest the investor had an option to convert their invested amount and accrued interest, at their sole option, in the equity shares of the said two companies, at the conversion rate which was pre-decided at the time of subscribing to the said OFCDs. Conversion into equity would enable higher returns due to which the investors invested.
However, last August the apex court had held that the scheme fell outside the purview of Sebi and as a result the OFCD's were lacking Sebi approval and illegally issued.
Last December the SC had directed Sahara companies to refund thousands of crores of rupees to Sebi, who upon verifying the investors and the invested amounts, were to ultimately refund their money to the unpaid investors.
The investors said they had invested their hard earned money and are now seeking court intervention to have it refunded.
NAME - MD. ABDUL WAHAB
CLASS - PGDM 1st year
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