SEBI seeks SC nod to arrest Sahara chief for refund default

The sum was raised for schemes by two Sahara companies,and the court has directed the amount be returned to SEBI for eventual refund to investors with a penal rate of interest.

Citing the latest status report by Justice (retd) B N Agrawal —appointed by the apex court to oversee SEBI’s actions —the market regulator said,“For expeditious refund of money,it would be just and expedient to take the measures for arrest and detention in civil prison of promoter of Saharas,Subrata Roy Sahara and two male directors,Ashok Roy Choudhary and Ravi Shankar Dubey,” after giving them an opportunity to be heard.

Agrawal also suggested that the three men and a third director named Vandana Bhargava deposit their passports with the court and be restrained from leaving the country without permission.

A statement from Sahara accused SEBI of proceeding “maliciously”. It said the market regulator’s clamour to arrest its promoter and directors was beyond SEBI’s authority. Sahara claimed the entire unpaid amount had been deposited with SEBI and records of redemptions had also been submitted for verification.

Sahara also rejected SEBI’s claim that it could not trace genuine investors in Sahara’s schemes. It said these allegations were “absolutely baseless,concocted,unverified,malicious,” and challenged SEBI to prove even one fictitious investor.