SC refuses to restrain Sebi from action in Sahara case

The Supreme Court on Monday refused to pass any urgent order on restraining market regulator Securities and Exchange Board of India (Sebi) from taking any coercive action against the Sahara group, which has reportedly failed to pay its first instalment of Rs 10,000 crore last week.

Appearing for the group and its two companies — Sahara India Real Estate Corporation (SIRECL) and Sahara Housing Investment Corporation (SHICL), senior advocate Ram Jethmalani urged a Bench led by Justice K S Radhakrishnan to restrain, in the interim, Sebi from resorting to coercive actions against them for breaching the court's directives on payment.

Justice Radhakrishnan however refused to pass any such order at this juncture. "Please don't make such submissions. We cannot pass any interim order today to restrain Sebi. Moreover, it is not the appropriate Bench for hearing your plea. The combination of judges is different for the Bench that had passed the final order," said the judge.

The court also refused to take up Sahara's application on an urgent basis and told Jethmalani that their plea would come in due course after the registry lists it and places it before the appropriate Bench, which comprises Justice Radhakrishnan and Justice K S Khehar.

It however allowed Sahara's request to file an additional affidavit for consideration of the court, which will on Tuesday adjudicate its review against the August-judgement that had ordered the firms to refund the money collected through debentures and submit the related documents before Sebi for verification.

Last week, the apex court had refused early hearing of its plea that sought modification of December 5 order giving the conglomerate time till February to refund Rs 24,000 crore raised from around three crore investors. The two firms sought stay on the direction on refund till its review plea is decided, saying the Rs 5,120 crore deposited with Sebi was in excess of the amount needed.

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