Tribunal dismisses Sahara group appeal against Sebi

In the appeal before SAT, the Sahara companies said that Sebi "has deliberately refused to accept the documents/ information and wrongly proceeded on the basis that the appellants are in non-compliance of the directions in the said judgment of the Supreme Court".

The two firms pleaded before SAT that they have also filed a petition before the Supreme Court seeking review of the August 31 judgment.

They further said the firms "are apprehending that the Board may not accept the payments that may be tendered in compliance with the orders of Supreme Court as the Board has arbitrarily refused to accept the documents/ information with regard to the investors of the Optionally Fully Convertible Debentures (OFCD) issued by the appellants.

"It is, therefore, prayed that this Tribunal may direct the Registrar, SAT, to accept custody of the amount to be paid by the appellants to the respondent by November 30 being the total amount payable by the appellants, towards outstanding and unredeemed OFCDs along with the interest thereon as per the directions of the Supreme Court."

The appeal said that Sebi be directed to provide the time frame within which the respondent will repay the amount to the OFCD holders and a scheme as to how the regulator proposes to refund the money.

Sebi counsel, however, objected to the appeal and told the tribunal that the letter issued by the regulator to the two companies was not "an appealable order" under Sebi Act.

He further submitted that the appeal is premature as no amount has been tendered by the two companies in compliance with the Supreme Court directions.

Sahara counsel Gopal Subramaniam argued that "the appellants are forced to approach this Tribunal in view of the conduct of the respondent Board in not accepting the documents tendered by them and it is apprehended that the pay order amounting to Rs 5,120 crore for repaying the amount to the OFCD subscribers will also not be accepted by the Board".

... contd.

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