At receiving end of the regulator

The investor refund case involving over Rs.240 billion that the Sahara Group had collected from investors has come back to haunt the company. Following directions from the Supreme Court, which had said that the market regulator Sebi was free to freeze accounts and attach properties if Sahara Group companies were not depositing the money with it for refund to investors, Sebi has ordered freezing of bank accounts and attachment of all properties of two group firms and top executives, including Subrata Roy. Passing two separate orders against Sahara Housing Investment Corporation Ltd and Sahara India Real Estate Corporation Ltd, Sebi said that the two companies had raised Rs.63.80 billion and Rs.194 billion respectively from bondholders and “various illegalities” were committed in raising of these funds. The properties being attached by Sebi include the land owned by Sahara Group company Aamby Valley Ltd, which has set up a resort village near Pune, development rights of land at prime locations in Delhi, Gurgaon, Mumbai and various other places across the country. Besides, Sebi has also ordered attachment of equity shares held in Aamby Valley Ltd, units of mutual funds, bank and demat accounts and investments in all the branches of all banks. Sebi has asked all the banks to transfer the amounts lying in those accounts to its Sebi-Sahara Refund Account.