Securities and Exchange Board of India (Sebi) Chairperson Madhabi Puri Buch said on Thursday that the market regulator will continue its pursuit of the Sahara case despite the death of the conglomerate’s founder .
While speaking to reporters on the sidelines of a FICCI event, news agency PTI quoted her as saying that the Sahara matter was about an entity’s conduct and added that it will continue regardless of whether an individual is alive or not.
The involving allegations of financial irregularities and violations of securities laws by two Sahara Group entities – Sahara India Real Estate Corporation Ltd (SIRECL) and Sahara Housing Investment Corporation Ltd (SHICL).
The case originated in 2008 when Sebi launched an investigation into Sahara’s fundraising practices, particularly the issuance of Optionally Fully Convertible Debentures (OFCDs), which Sebi deemed to contravene securities regulations.
In 2011, the Sebi issued directives to Sahara Group entities, SIREL and SHICL, ordering the refund of funds raised from approximately 3 crore investors through OFCDs. Sebi, citing violations of its regulations, prompted a protracted legal battle.
On August 31, 2012, the Supreme Court upheld Sebi’s decision, instructing the two firms to refund the collected amount with a 15 per cent interest.
As a result, Sahara was mandated to deposit an estimated Rs 24,000 crore with Sebi for further investor reimbursements, despite the group’s claim of having already directly refunded over 95 per cent of the investors.
