Frowning at Sahara Group’s real estate and finance companies for taking advantage of its “politeness and generosity”, the Supreme Court Thursday told them to provide all information sought by SEBI about their claim to have returned 90 percent of Rs.24,000 crore collected from investors.
“We have been most polite. We have been most generous. But you don’t like it. In that case, we will show the stick to you,” said a bench of Justice K.S. Radhakrishnan and Justice Jagdish Singh Khehar venting their displeasure over SIRECL and SHICL stonewalling every communication from market regulator, Securities and Exchange Board of India (SEBI).
“What ever they (SEBI) have asked you, unless it was endorsed by us, you have not given,” said Justice Khehar.
The instant provocation for the top court’s ire was refusal by Sahara India Real Estate Corporation Limited (SIRECL) to disclose the source of funds that it used for redeeming the money collected through Optionally Fully Convertible Debantures (OFCD).
The SIRECL in a Jan 1 communication to SEBI said that the fact of redemption could be verified from the redemption vouchers made available to the market regulator and “the source of money from where redemption were made is not material”.