Good news for Sahara investors, company ordered to return ₹14,000 crore; Know when money will come to your account

Sahara India Refund Update: Securities Appellate Tribunal has ordered Sahara India to return Rs 14,000 crore. The court has upheld SEBI’s decision in which the company was asked to return the money raised through Optionally Fully Convertible Debentures (OFCDs). Sahara had issued debentures from 1998 to 2008. The tribunal says that securities related laws were violated in this process.

SEBI says that if you raise any amount from 50 or more people then it is considered a public issue. For this IPO has to be launched and permission has to be taken from SEBI. But Sahara did not do this. At the same time, Sahara argues that it was a private placement and money was taken from some special people only.

Claim to return ₹14,106 crore

However, Sahara had raised this amount from 1.98 crore investors. SEBI passed the order against Sahara on 31 October 2018. After this Sahara India Commercial Corporation Limited (SICCL) filed an appeal in the tribunal. Whose decision has now come. Sahara says it has returned almost all of the ₹14,106 crore, only Rs 17 crore is left.

According to the company, he returned ₹8,157 crore in cash and gave away shares worth ₹4,400 crore. Apart from this, regarding violation of rules in raising money, the company says that they had taken permission from the Registrar of Companies.

What did market regulator SEBI say?

SEBI says that there is no concrete evidence that the money has been returned. According to SEBI, such a huge cash refund cannot be given by law and the issue of conversion into shares also seems doubtful. Also, on the argument of the Registrar of Companies, SEBI has said that this permission is not an alternative to the rules made by it. SEBI has also accused Sahara that the company has not submitted the list of investors.

What is the court’s decision?

• If money is raised from 2 crore people, it will not be from anywhere private. While the limit is 50 people.
• SEBI has the authority since 1992 to investigate public investments.
• SEBI took time to scrutinize the papers, hence Sahara’s allegation of taking action after 17 years is also wrong.

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What is the benefit to the common man from this?

When Sahara returns this money to SEBI, the regulator will use this amount to return it to the investors. However, the money will be available only to those people who can provide proof of their identity and investment. Right now Sahara has an option to Supreme Court Go away and from there this order should be stayed.