Sahara group gets SC relief from SAT order

28 Nov 2011

The Supreme Court today stayed a Securities Appellate Tribunal (SAT) order directing two Sahara Group companies to refund around Rs17,400 crore to their investors.

The tribunal had directed Sahara India Real Estate Corp and Sahara Housing Investment Corp to refund the money they had collected from investors through optional fully convertible debentures (See: SAT orders Sahara group to refund Rs24,000 crore to investors)

A bench headed by Chief Justice S H Kapadia extended till 9 January the date for the two companies to inform it about their financial status and how had they secured the investors' money.

The court also asked the Securities and Exchange Board of India to file its response in the case.

The judge directed the two companies to file a detailed affidavit explaining how it would protect the interests of their 23 million investors who have put money in the two realty companies.

Sahara India Real Estate Corp is now known as Sahara Commodity Services Corp Ltd.