Tag Archives: Sahara India

Sahara seeks review of Supreme Court verdict on refunding Rs. 24,000 crore

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india realty news, india real estate news, real estate news india, realty news india, india property news, property news india, india news, property news, real estate news, India Property, Subrata Roy, Sahara India, SEBI, Securities and Exchange Board of India, Track2Media, Track2Infra, Track2RealtyTrack2Realty-Agencies: The Sahara group today moved the Supreme Court seeking review of the verdict ordering it to refund Rs. 24,000 crore, raised from investors through optionally fully convertible debentures (OFCDs).

Challenging the apex court’s August 31 verdict on 55 counts, the group sought the hearing of its review petition in the open court.

Setting the deadline to refund the money, the apex court had said if the firms—Sahara India Real Estate Corporation (SIREC) and Sahara Housing Investment Corporation (SHIC)—fail to refund the amount, market regulator, the Securities and Exchange Board of India (SEBI), can attach properties and freeze bank accounts of the companies.

It had asked the companies to refund the money to their investors within three months with 15 per cent annual interest. It had also asked Sahara to furnish all its documents to SEBI and also appointed one of its retired judges, Justice B.N. Aggarwal, to oversee the action taken by Sebi against the two Sahara group firms.

Interestingly, the group filed the review petition a week after promising to the apex court that its two firms would refund the money within the stipulated time frame. “We will refund the amount. There is no question of going back,” senior advocate Gopal Subramaniam, appearing for the company, had told the apex court on September 28.

Sahara to refund Rs 24,000 cr to investors in 3 months

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india realty news, india real estate news, real estate news india, realty news india, india property news, property news india, india news, property news, real estate news, India Property, Subrata Roy, Sahara India, SEBI, Securities and Exchange Board of India, Track2Media, Track2Infra, Track2RealtyTrack2Realty-Agencies: Sahara Group on Friday, Sep 28, assured the Supreme Court that its two companies, which had raised Rs 24,000 crore through Optionally Fully Convertible Debentures (OFCDs) from their investors will refund the amount within three months.

“We will refund the amount. There is no question of going back,” senior advocate Gopal Subramaniam, appearing for the company, told a bench headed by Justice K S Radhakrishnan.

He also pleaded with the bench to grant the firms some time to sort out the ‘disagreement’ with the Securities and Exchange Board of India (SEBI), which has alleged that the company is not supplying all the documents pertaining to investors to it according to the apex court’s previous order.

The bench was hearing an application by SEBI, which has alleged that the Sahara Group has not furnished all documents in its custody to the market regulator as was directed by the apex court to do by September 10.

The bench after hearing the arguments posted the matter for further hearing on October 19. The apex court on August 31 had said that if the companies — Sahara India Real Estate Corporation and Sahara Housing Investment Corporation — fail to refund the amount then SEBI can attach properties and freeze bank accounts of the companies.

It had asked the companies to refund the money to their investors within three months with 15 per cent annual interest. It had also asked Sahara to furnish all its documents to the regulator.

Sahara blames SEBI for not accepting investor data

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india realty news, india real estate news, real estate news india, realty news india, india property news, property news india, india news, property news, real estate news, India Property, Subrata Roy, Sahara India, SEBI, Securities and Exchange Board of IndiaSahara India has accused market regulator SEBI of not accepting data, since Monday, of the three crore investors of the company who had invested in its optionally fully convertible debentures (OFCDs). Sahara sent the data to SEBI following a Supreme Court order to furnish documents relating to investors, supporting redemption documents, application forms, approval and allotment of bonds to the market regulator.

The apex court on August 31 had directed two Sahara group companies-Sahara India Real Estate Corporation (SIREC) and Sahara Housing Investment Corporation (SHICL)-to furnish data of around three crore OFCD investors, who had invested about Rs 17,400 crore in these two companies, to the market regulator.

A truck carrying a voluminous data in about 30 crore pages reached SEBI office on Monday evening at 7.30 pm but was denied entry by SEBI officials, who refused to take delivery of the documents on Tuesday morning, said a Sahara statement. It added that a company representative was detained by SEBI till 7.30pm on Monday evening unless he accepted a SEBI letter, proposed to be addressed to Sahara. SEBI could not be reached for a comment.

” SEBI is acting with vengeance…Such an attitude is questionable from a respectable regulator like SEBI,” said the Sahara statement, adding that SEBI is not co-operating as the documents are being delivered in parts and is instead asking for original vouchers.

Sahara Group clarifies after Supreme Court verdict

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india realty news, india real estate news, real estate news india, realty news india, india property news, property news india, india news, property news, real estate news, India Property, Subrata Roy, Sahara India, SEBI, Securities and Exchange Board of IndiaThe Sahara Group has clarified their stand in public after the jolt by the Supreme Court asking them to refund within three months Rs. 24,029 crore it had collected between 2008 and 2011 from over 2.96 crore investors, flouting mandatory regulatory provisions and the Company Act. In the wake of media onslaught after the Court asked two Sahara Companies to pay 15% interest on the amount, the Group in a statement has following version in its defence.

Track2Realty presents the Sahara Group version in verbatim–

In 2008/2009 Sahara filed its RHP under the provisions of the Companies Act with the Ministry of Corporate Affairs, which was duly registered and approved by them for raising money for Real Estate Business on the same basis as was done in 2002 for an earlier issue of Sahara.  The earlier issue was duly closed and registered with the competent authority in 2008 along with the list of all investors running into millions.

Any country’s system will collapse if after getting clear, clean permissions from country’s competent Government’s Regulator, the company is so severely punished.  Meaning, lawful bona-fides are severely punished with retrospective effect.

Here we want to inform all our Hon’ble Depositors and investors that you need not worry about anything and be at absolute peace since as Sahara is the most dutiful and absolute honest custodians of your money and by the grace of God, we are so healthy with all-round strength that there cannot be even one day delay in any payment commitment of Sahara.

In the last 33 years there is not a single complaint of non-payment, whereas we have paid around Rs.1,40,000 crores maturity/redemption and against the enrollment of around 12 crores investors.

People cannot accept Sahara’s meteoric growth. Instead of being appreciated, all along we have been at the receiving end of the bashing from all authorities again and again.

All along for the past 7-8 years we have felt and faced the   onslaught of various authorities since they concluded whimsically without any verification that the deposits, investments we have received from the public are fictitious and bogus as they feel the money with us is ill-gotten from politicians etc.

Firstly, Income Tax Department held on to our refund for decades to the tune of around Rs. 2000 crores, but ultimately it was truth that prevailed, they verified and verified and ultimately they had to pay us back the entire amount in the year 2011.

Reserve Bank of India, in 2008, killed our Financial Inclusion based RNBC activities and gave us 7 years’ time to repay our depositors, which we cleared in just 4 years.

Of course we shall never blame the Respected Judges of Hon’ble Courts of our beloved country.  However, it is the fault of the machinery which presents the facts incorrectly and in such a manner so as to create a false and negative perception so as to convince the Hon’ble Courts that Sahara has collected unbelievably large sums of money from public which are actually ill gotten and fictitious.

AND THE FACT IS THAT THERE IS NOT A SINGLE BENAMI MONEY AND THIS STATEMENT IS SAHARA’S CHALLENGE TO ALL AUTHORITIES OF OUR COUNTRY.

Further we claim with challenge that each and every rupee we have accepted in last 33 years is always against receipt from the company and with an application form duly signed by the Hon’ble depositors/investors.  Every rupee which has come to Sahara can be verified by the authenticity of the depositors/investors. WE INVITE THE CONCERNED AUTHORITIES OF THIS COUNTRY TO COME AND VERIFY.

FURTHER CHALLENGE OF SAHARA TO ENTIRE AUTHORITY OF THE COUNTRY TO COME AND VERIFY OUR CLAIM THAT SAHARA HAS NOT DONE ANYTHING EVER AGAINST THE LAW OR SPIRIT OF LAW, SAHARA HAS NOT DONE ONE RUPEE BLACK MONEY BUSINESS, NOT EVER GONE TO ANY AUTHORITY FOR UNDUE FAVOUR (whether through licensing or beneficial quotas) FOR EVEN ONE RUPEE EARNING WE ONLY BELIEVE IN HARD WORK WITH ABSOLUTE HONESTY AND DEDICATION.

Even we would like to mention that all along MCA, RoCs and Sahara were lawfully (as per the Company’s Act) absolutely right, everyone’s problem is why and how can Sahara raise so much of funds from public. Irresponsible people only conclude that this is all ill-gotten money and from the politicians, whereas around 90% of our depositors, investors are those very small investors, who never go to banks and banks too never reach them.

We should rather always get a pat on our backs for such good social work.  Had our committed Ten lakh workers not gone to those small depositors they would have spent those monies in alcohol or gambling etc., we are saving their monies and bringing them to the nation’s mainstream and thus helping those poor people for their better future out of forced savings.

The saddest part is sitting on the chair in air conditioned offices, they imagine and allege and never bother for any sort of verification.

If we continue to write about THE INJUSTICE WE HAVE FACED FROM SO FAULTY A SYSTEM OF OUR COUNTRY probably huge space will be required.  Let us not go for those, but we should write here that for the future interest of our country these totally unjustified tortures are responsible for India’s corporates (Big, medium or small) continuously developing business outside the country and good brain run away from the country.  Of course, we at Sahara, we are not escapists.  We shall fight against the system and grow in our beloved country for the growth of our country.

Through our expansion programs in next 2 to 3 years we shall provide permanent salaried employment of around 3 lakhs people apart from around 5 lakhs new introduction of field workers.  Meaning Sahara shall be providing livelihood to around 18 Lac families.

Sahara Group negotiating to buy 55% stake in Beverly Hilton

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india realty news, india real estate news, real estate news india, realty news india, india property news, property news india, india news, property news, real estate news, India Property, Subrata Roy, Sahara India, SEBI, Securities and Exchange Board of IndiaThe Sahara Group, fresh after a string of acquisitions of Marquee Hotel properties in the UK and the US, is in talks with US-based Oasis West Realty to pick up a controlling stake in Beverly Hilton Hotel, a landmark Los Angeles property that has been hosting the Golden Globe Awards.

The owner of Oasis, Beny Alagem, had approached Sahara to sell 55% stake in the iconic hotel for about $340 million (Rs 1,900 crore), sources close to the development said.

Sahara group Chairman Subrata Roy confirmed that his group was in talks without divulging any further details.

“They had approached us sometime ago and we are in negotiations.”

Oasis was not immediately available for comment. Sahara Group’s external communication agency did not respond to emailed queries sent by Track2Realty seeking information on the talks.

The Sahara Group last month bought a majority stake in New York’s iconic Plaza Hotel for Rs 3,200 crore, the second iconic property it has purchased in recent years. In 2010 it acquired the Grosvenor Hotel in London. Oasis has been scouting for an equity partner to fund expansion plans since 2011, after Alagem abandoned an earlier plan to sell the hotel for about $500 million.

Oasis plans to add a 170-room, five-star hotel and a 150-condos residential tower to the nine-acre property. The proposed hotel block, a source said, would be managed by US-based Hilton Hotels  and named The Waldorf Astoria.

The 57-year-old Beverly Hilton, on the intersection of Wilshire and Santa Monica boulevards, hosts about 175 red carpet events every year, including the Golden Globe Awards. It was also in the news recently after singer Whitney Houston was found dead in one of its suites last February.

The Sahara chief, however, did not disclose how he planned to fund the acquisition of the 570-room property in Beverly Hills.

SAT upholds SEBI order; asks Sahara to refund Rs 24K cr to investors

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india realty news, india real estate news, real estate news india, realty news india, india property news, property news india, india news, property news, real estate news, India Property, Sahara India, Subrata Roy, Securities Appelate Tribunal, SEBI, Securities Exchange Board of IndiaThe Securities Appellate Tribunal (SAT) on Tuesday, September 18, upheld an order passed by the market regulator SEBI against two Sahara group companies and directed them to return money raised from the public in violation of securities regulations with an interest of 15%.

“The appellants in both the appeals shall now repay within six weeks from today,” said the order.

Sahara India Real Estate Corporation and Sahara Housing Investment Corporation had raised money from the public by issuing a hybrid instrument known as optionally fully convertible debenture, or OFCD. The money was to be used for funding projects worth an estimated Rs.40,000 crore, according to the Securities and Exchange Board of India (SEBI) order.

SEBI found the method of raising capital to be violative of various regulations and passed an order against the companies in June this year.

On Tuesday, SAT dismissed the appeal against the order. The tribunal struck down the argument that OFCDs were not securities and therefore did not fall under SEBI’s jurisdiction. It also ruled against an argument that the money was not raised by a public issue though it was collected through an information memorandum circulated to over three crore people through ten lakh agents and over 2900 branch offices.

SAT also noted that the company withheld material facts from the Registrar of Companies. “Not only did the company withhold material facts from the RoC, it also failed to furnish to its shareholders all material particulars of persons from whom capital was sought to be raised on private placement basis,” SAT noted.

The tribunal also drew attention to the conduct of the RoC. “Even the conduct of the RoC leaves much to be desired. We say so because the RHP (Red Herring Prospectus) was presented to him. The fact that the company had a capital base of only Rs.10 lakh with no other assets or reserves and was a loss-making company and was going to collect Rs.20,000 crore by private placement should have alerted him and he should have made necessary queries in this regard,” said the order.

There were 2.21 crore investors for the OFCDs, which raised more than Rs.19,400 crore, according to one affidavit mentioned in the SAT order. Of this, Rs.17,656 crore was outstanding as of August 31, 2011.

A second affidavit not mentioned in the order but reported in the media held a further Rs.373 crore to be outstanding, taking the total capital to be repaid to Rs.24,029 crore.

Sahara said SEBI had previously taken a contradictory stand on the jurisdiction of private placements. “Such a contradictory act by a responsible regulator can only happen in our system… on the one hand SEBI clearly replies to Parliament that the private placement of debenture is not under its jurisdiction but on the other hand, SEBI submits to the court of law an entirely opposite statement in the case of Sahara’s issue, i.e. private placements comes under SEBI’s jurisdiction,” it said in a statement.

A Sahara spokesperson said the group will appeal again in the Supreme Court.

Sahara had 2 crore investors in one firm

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india realty news, india real estate news, real estate news india, realty news india, india property news, property news india, india news, property news, real estate news, India Property, Sahara India, Subrata Roy, Securities Appelate Tribunal, SEBI, Securities Exchange Board of IndiaSahara India Real Estate Corporation had garnered investments from over 2 crore investors through three separate securities, according to an affidavit the company filed on Wednesday, September 14.

The company placed the documentas part of the ongoing proceedings in the Securities Appellate Tribunal, where it has appealed against an order from the stock market regulator.

The original Securities and Exchange Board of India (SEBI) order had made reference to an estimated 66 lakh investors, which it noted was larger than the investor base of the ‘listed company with the biggest market capitalisation’ which had only under 40 lakh investors.

The latest affidavit puts the figure at more than thrice that. With more than 2 crore investors, Sahara’s securities had more takers than many large mutual funds.

The top three mutual funds have 1.43 crore folios or individual investor accounts, according to data from the Association of Mutual Funds in India.

The document also gave details of the capital the company still holds and its utilisation of the collected funds in various real estate projects.

A second affidavit on Sahara Housing Investment Corporation is yet to be read out.

Sahara India Real Estate Corporation and Sahara Housing Investment Corporation had raised money from the public by issuing a hybrid instrument known as optionally fully convertible debentures (OFCDs), allegedly in violation of the Companies Act and SEBI regulations.

SEBI had asked Sahara entities which raised money from the public in violation of regulations to refund the money with an interest of 15% per annum.

The stock market regulator has also restrained promoter Subrata Roy Sahara, two Sahara group companies and their directors from accessing the securities market.

The company approached the Supreme Court which redirected their appeal to the SAT.

According to the affidavit, the company filed in SAT on Wednesday, Sahara India Real Estate issued three separate securities, which were subscribed by a total of 2.2 crore investors.

They were distributed by agents of an erstwhile residuary non-banking finance company which belonged to the group company. These agents were not employees of the company but received remuneration from it, said the affidavit.

The number of investors was at 1.21 crore and the funds mobilised stood at Rs.17,656 crore as per the latest figures that Sahara provided.

The parent company also infused capital in excess of Rs.2,000 crore in Sahara India Real Estate Corporation.

The funds were utilised for various real estate projects. These projects had a book value, or value in the book of accounts usually based on original price, of Rs.22,000 crore. The value of these assets, which includes land as well as development rights has a realisable market value of Rs.56,318 crore, said the document read out in court.

The lawyers for Sahara also argued that optionally fully convertible debentures, which carry a fixed price are not listed on either the Bombay Stock Exchange or the Calcutta Stock Exchange.

The opposing lawyers countered that there were 50 OFCDs listed on the National Stock Exchange, though they requested time to find out if these carried a fixed price.

The case is set to be heard again on Thursday.

SAT says listing must for issues with 50 or more investors

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india realty news, india real estate news, real estate news india, realty news india, india property news, property news india, india news, property news, real estate news, India Property, Sahara India, Subrata Roy, Securities Appelate Tribunal, SEBI, Securities Exchange Board of IndiaThe Securities Appellate Tribunal (SAT) on Thursday, September 8, said if a company decides to raise money from 50 or more people, it must list the securities on a stock exchange to protect investors’ interests.

SAT was hearing an appeal filed by Sahara India Real Estate Corp. Ltd and Sahara Housing Investment Corp. Ltd against a Securities and Exchange Board of India (SEBI) order that banned the two firms and their directors from raising money from the public through optionally fully convertible debentures (OFCDs).

“It is the basic right of an investor to be able to trade the shares if a company decides to raise money from more than 49 investors. Therefore, it is mandatory for it to be listed,” said SAT Presiding Officer N.K Sodhi.

He was responding to the arguments of Arvind Datar, senior SEBI counsel, who said OFCDs issued by the two Sahara group firms to nearly 6.6 million investors were not a private placement as claimed by the companies.

Datar said that the nature of the forms issued by the two firms for subscription of OFCDs and the information memorandum filed by them before the Registrar of Companies (RoC) suggested that it was a public issue.

“Since it is a public issue, the two firms are bound to come under the jurisdiction of SEBI,” he argued.

Sahara has maintained that unlisted public companies do not come under SEBI regulation.

Sahara’s counsel Fali S. Nariman said both the firms had declared to the RoC that they wanted to raise money from more than 50 investors and had no intention of listing.

Datar countered this argument citing Section 73 of the Companies Act, which stipulates that every company wishing to offer shares or debentures to the public for subscription by the issue of a prospectus shall make an application to a stock exchange seeking permission.

This rule, according to Datar, should be read in conjunction with Section 55A of the Act, which says that in case of those public companies which intend to get their securities listed on any recognized stock exchange in India should be administered by SEBI.

Therefore, it would be mandatory for a company to take SEBI’s clearance before raising capital from a group of 50 or more investors, said Datar.

SAT asked the Sahara group firms to submit an affidavit, disclosing the number of investors in each scheme, the date on which the firms started collecting money from investors, total money mobilized by the two firms and the mode adopted by them to approach investors for the placement of OFCDs.

Sahara Group is expected to file the affidavit by 12 September. The hearing will continue on Monday.

Sahara challenges govt stand on OFCDs issue at SAT

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india realty news, india real estate news, real estate news india, realty news india, india property news, property news india, india news, property news, real estate news, India Property, Subrata Roy, Sahara India, SEBI, Securities and Exchange Board of IndiaWhy did the Central Government register its debenture-issue prospectus and then take well over a year to suddenly say it didn’t agree, asked counsel for the Sahara group of companies at the Securities Appellate Tribunal (SAT) today.

Sahara India Real Estate Corporation and Sahara Housing Investment Corporation are contesting an order by the Securities and Exchange Board of India (SEBI) to refund money collected by issuing Optionally Fully Convertible Debentures (OFCDs). In an affidavit filed at SAT last week, the central government supported SEBI’s action.

Saying the stand was “irresponsible”, Sahara counsel Fali S Nariman said the registrar of companies was not just a “record keeper”. It was bound to refuse documents filed by companies if these were not in order. “You can’t come to me after two and a half years and say all my documents are false and illegal,” he said.

SAT also directed the government to spell out what decision it had taken on the matter of jurisdiction when it had asked Sahara for details of the OFCD issue in October 2010, even while a probe by the market regulator was on.

Sahara contended it had not concealed any detail in the prospectus and had made clear its intention not to list the OFCDs. The counsel argued extensively on Section 55A of the Companies Act, which he said limited the powers of SEBI to companies that are listed and those intending to list. The Sahara group companies, having categorically said in their prospectus that they did not intend to list the OFCDs, would not come under SEBI’s jurisdiction, the counsel argued.

However, SAT presiding officer N K Sodhi said Section 55A did not have the effect of curtailing the powers vested on SEBI by Sections 11 and 11A of the SEBI Act.

Nariman will continue his arguments on the section and other important questions of law, including whether the OFCDs are ‘securities’ as defined under the SEBI Act. According to Sahara, the instruments are “hybrids” and do not come under the definition of securities.

Tomorrow, SAT will also hear an application filed by the Mumbai-based Investors and Consumer Guidance Society to make itself a party to the dispute. The investor group’s lawyer said, “The question of law on Section 55 A has a wider implication on the investor community. We will support SEBI.”

Sahara moves SC against SEBI order on refunds

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india realty news, india real estate news, real estate news india, realty news india, india property news, property news india, india news, property news, real estate news, India Property, Supreme Court of India, Subrata Roy, Sahara India,  Track2Media, Track2RealtySahara Group has moved the Supreme Court against capital market regulator SEBI’s order asking it to return money collected from investors through a scheme along with 15 per cent interest.

A vacation bench headed by Justice P Sathasivam directed the matter to be listed for hearing on July 4, the first day after the vacation. Sahara India has criticised market regulator’s move to make its order public when the matter is pending before the Supreme Court.

SEBI on June 23 had directed two Sahara group companies — Sahara India Real Estate Corp (SIRECL) and Sahara Housing Investment Corp (SHICL) — to refund the money raised from investors through optionally fully convertible debentures (OFCDs) with an annual interest of 15 per cent from the date of receipt of money.

The Sahara group firm sought court directions to SEBI to remove the order from its website and restrain the market regulator and its officials from publicising the order which it has challenged. The Sahara’s counsel argued that the company wants SEBI to expunge the parts of the order directing it to return money with interest to the investors as it has created a panic among the investors.

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