Sahara India Case Updates

Timeline of Sahara India Case Updates: 2010 to 2022

The Sahara group (सहारा ग्रुप) is one of the most prominent business conglomerates in India. It was founded by Subrata Roy, who is also the chairman and managing director of the group. The Sahara group has had its share of controversies over the years, but the one that has been making headlines recently is their alleged involvement in a Ponzi scheme. Let’s take a look at all the updates on this case so far.

Sahara India Latest Case Updates: From Start to Still Yet to be Finished (सहारा इंडिया केस अपडेट)

If you’re following the Sahara India case updates, you know that it’s been a roller coaster of a ride. Here’s a timeline of all the major developments in the case so far. 

August 2010

The Securities and Exchange Board of India (SEBI) passed an order initiating investigation into Sahara India Real Estate Corporation Limited (SIRECL) and Sahara Housing Corporation Limited (SHCL). 

The reason for the initiation of the investigation was due to a complaint that alleged irregularities in the way that the two companies had raised money through optionally fully convertible debentures (OFCDs). 

Specifically, it was alleged that the companies had violated certain provisions of the Companies Act, 1956 and the SEBI regulations.

November 2010

Sahara Prime City, a real estate project being developed by SIRECL and SHCL, ran into delays. 

In response to this, SEBI passed an interim order against SIRECL and SHCL, prohibiting them from raising any more money through OFCDs. The order also directed the companies to refund all the money that had been raised through OFCDs within three months.

December 2010

The Allahabad High Court gave a stay on the SEBI order. This meant that SIRECL and SHCL were not required to refund the money that had been raised through OFCDs. 

January 2011

SEBI called for the schemes of investors who had invested in OFCDs. The purpose of this was to determine whether or not the investors had been properly informed about the risks involved in investing in OFCDs. 

April 2011

The Allahabad High Court vacates the stay in the Sahara Group case. This necessitates the company to share the full details of investors with SEBI. The order also directs SIRECL and SHCL to refund all the money that had been raised through OFCDs within three months. 

May 2011

Sahara Group files a petition in the Supreme Court seeking a stay on the Allahabad High Court order. The group also challenges the legality of the SEBI investigation. 

June 2011

The Supreme Court dismissed the Sahara Group’s petition and ordered SIRECL and SHCL to refund all the money that had been raised through OFCDs within three months. The court also directs SEBI to pass an appropriate order concerning investor protection. 

Furthermore, the court asks Sahara Group to submit a list of all the investors who have invested in OFCDs. 

July to August 2011

Sahara Group files an appeal in the Securities Appellate Tribunal (SAT) against the SEBI order. The group challenges the legality of the SEBI investigation and argues that the order to refund all the money raised through OFCDs is unjust and unfair. 

August 2012

The Supreme Court asks Sahara Group to pay Rs. 2400 crore within 90 days to investors. The court also ordered SIRECL and SHCL to submit a list of all the investors who have invested in OFCDs. 

December 2012

Sahara Group gets more time from the Supreme Court to refund money. 

January 2013

SEBI ordered Sahara India Real Estate Corporation Limited (SIRECL) and Sahara Housing Corporation Limited (SHCL) to refund the money to investors along with 15% interest. The order also freezes the accounts of these two companies. 

February 2013

Sahara Group files a petition in the Supreme Court seeking a review of the SEBI order. The group argues that the order is unjust and unfair. 

April 2013

The Supreme Court dismisses the Sahara Group’s petition and upholds the SEBI order. The court ordered SIRECL and SHCL to refund all the money that had been raised through OFCDs within three months. 

March 2014

Subrata Roy and two other directors of Sahara India, were sent to Tihar jail.

March 2015

Supreme Court said that the total dues from Sahara have gone up to Rs 40,000 crore with the interest

July 2015

Securities and Exchange Board of India canceled the license of Sahara’s mutual fund business

May 2016

Subrata Roy Sahara released on parole for four weeks from Tihar jail due to his mother’s death

January 2017

Supreme Court quoted in the matter of the Sahara India case

In the circumstances, we direct that the interim-arrangement made by our orders dated 06.05.2016 and 11.05.2016 shall continue till 06.02.2017 subject to the Sahara depositing in the Sahara-SEBI Refund Account a further amount of.600,00,00,000/- (Rupees six hundred crores only). Needless to say, in case the deposit is not made, the contemnors shall be committed to prison as before.

After hearing the senior counsel Mr. Sibal, the court Said –

Referring to the said order, it is urged by Mr. Sibal that the contemnors may be permitted to transfer thirty-five million pounds equivalent to Rs.285 crores (Rupees two hundred eighty-five crores only) lying in Sahara account in London bank. On a query being made, Mr. Datar, learned senior counsel appearing for SEBI and Mr. Rana Mukherjee, learned senior counsel appearing for the Union of India respectively, have stated that they have no objection to the transfer of the money in the SEBI-Sahara Refund Account. The permission is granted accordingly. The other directions remain undisturbed.

Feb 2017

SC ordered to attach the property of Sahara India and quoted,

We are of the convinced opinion that the property situated at Aamby Valley City, Pune, should be attached and, accordingly, it is so ordered

Oct. 2017

Supreme Court ordered to auction of the asset of Sahara India and quoted,

We direct without any hesitation that the auction shall be held as per the direction given by this Court and the Official Liquidator is permitted to carry out the auction as per procedure and during the auction the Registrar General of the High Court of Bombay, who is designated as Supreme Court appointee, shall remain personally present to oversee the physical auction at the auction venue at Mumbai

February 2018

In the matter of Sahara Mutual Fund, SC quoted,

Supreme Court ordered Sahara Mutual Fund to wind up all its schemes. Sahara Mutual Fund is permitted to continue to run its ‘Sahara Tax Gain Fund’ till July 27, 2018. However, Sahara MF shall not accept any new investor under the ‘Sahara Tax Gain Fund.’ The trustees of Sahara MF are directed to file a monthly report to SEBI updating the status of the redemption process from April 2018 till the winding up of all Schemes

July 2018

In the matter of  Sahara’s Asset auctioning, SC quoted,

In view of the obtaining fact situation, the Receiver and the Official Liquidator are discharged. It is, however, made clear that they shall be discharged after the furnishing of account, as noted above. SEBI is permitted to replenish the expenses made by it. SEBI shall also pay the expenses incurred by the Receiver as well as the Liquidator. Needless to say, the account of the same shall be furnished to the contemnor

October 2018

In the matter of Sahara India Commercial Corporation Limited, Supreme Court quoted,

Shri Subrata Roy Sahara, Shri O.P. Shrivastava and other promoters are directed to provide a full inventory of all their assets and properties and details of all their bank accounts, demat accounts and holdings of mutual funds/shares/securities, if held in physical form and demat form.

SICCL, Shri Subrata Roy Sahara, Shri O.P. Shrivastava and others are directed not to, directly or indirectly, access the securities market, by issuing prospectus, offer document or advertisement soliciting money from the public and are further restrained and prohibited from buying, selling or otherwise dealing in the securities market, directly or indirectly in whatsoever manner, from the date of this Order, till the expiry of 4 (four) years from the date of completion of refunds to investors as directed above.

January 2019

In the matter of Sahara, Supreme Court declined to pass any order in a matter of SEBI

January 2020

In the matter of Sahara, Supreme Court had the presence of counsel to list on a non-miscellaneous matter,

Senior Counsel handed over a cheque, of Rupees Fourty One Crore Fifty Eight lakhs, Ninety Nine Thousand and One Rupee only of State Bank of India drawn in favour of “SEBI Sahara Refund Account” to the learned counsel appearing for Securities and Exchange Board of India (SEBI), which is accepted without prejudice.

March 2021

Supreme court canceled the Certificate of registration of the Sahara India Financial Corporation Limited

June 2022

In the matter of SIRECl and SHICL, after having considered all the facts and circumstances of the case Supreme Court imposed the penalty on the associated people of Sahara India.

July 2022

Supreme Court Sets aside the directions passed by Patna HC against Sahara chief Subrata Roy in bail Plea, says Patna HC exceeded bail jurisdiction by directing Sahara chief Subrata Roy to return investments

What is the Sahara India Case Status in 2022? (सहारा इंडिया केस अपडेट 2022)

The case is still ongoing. In February 2018, the Enforcement Directorate (ED) raided the premises of the Sahara Group in connection with an alleged money laundering case. On May 2018, the ED attached assets worth Rs 2,622 crore belonging to the Sahara Group. In August 2018, a court in Mumbai issued warrants against Subrata Roy and two directors of the Sahara Group in connection with an alleged cheating case. The case is still pending and a decision has not been reached yet.

What does the Future Hold for Investors in Sahara India Group Scheme?

It is still unclear what the future holds for investors who invested in Sahara India. The case is still pending and a decision has not been reached yet. The investors may get their money back, but it is also possible that they will not. Only time will tell what the outcome of this case will be.

Final Thoughts

The Sahara India case has been ongoing for quite some time and has seen a few twists and turns. We’ve compiled all the updates for you in one place so that you can stay up to date on the latest happenings. What do you think will happen next in this complex case?

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Harsh Kumar
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