Press Information Bureau

Government of India

Ministry of Finance

13-December-2012 18:52 IST

Hon’ble Supreme Court, vide its judgement dated August 31, 2012 directed Saharas (Sahara India Real Estate Corporation Ltd (SIRECL) and Sahara Housing Investment Corporation Ltd (SHICL) to refund the amount collected through Optionally Fully Convertible Debentures (OFCDs) along with 15% interest to Securities and Exchange Board of India (SEBI) within three months from the date of the order i.e., by November 30, 2012. However, they did not refund the money to SEBI within the said time frame and instead approached the Hon’ble Supreme Court. The matter was heard before the Hon’ble Court on December 3 and December 5, 2012. The Hon’ble Supreme Court, vide its order dated December 5, 2012 directed SIRECL and SHICL to deposit Rs. 5120 crore with SEBI immediately and pay the balance in two instalments by first week of January, 2013 and first week of February, 2013. Consequently, SIRECL and SHICL deposited Rs. 5120 crore with SEBI on December 5, 2012 as part payment.

This was stated by the Minister of State for Finance Shri Namo Narain Meena in a written reply to a question in the Rajya Sabha today.

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DSM/RS/ka

Refund of OFCD proceeds with interest ordered; partial deposit made and remaining payments scheduled in instalments. Order to refund proceeds of Optionally Fully Convertible Debentures (OFCDs) with 15% interest was issued after non-compliance with the initial deadline; a judicial direction required an immediate custodial deposit of a substantial portion of the receipts with the regulator and payment of the remaining balance by instalments, and an official statement recorded that the initial deposit was made as part payment and the balance scheduled for subsequent instalments.