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All you need to know about the Subrata Roy case

Yahoo! India Finance
Yahoo! India Finance

Sahara India chief Subrata Roy surrenders before the police, a day after they failed to trace him to execute a Supreme Court warrant for his arrest.  What is the whole saga about? What was he charged with?

 Here is a time line of the Sahara-Sebi case

November 2010:The Securities and Exchange Board of India or SEBI, bars Sahara India Group chief Subrata Roy and two companies from the Sahara stable - Sahara India Real Estate Corp and Sahara Housing Investment Corp - from raising money from the public. The two companies had raised several thousand crores through optionally fully convertible debentures.

SEBI deemed the fund-raising illegal, to which Sahara responded with full-page advertisements in newspapers.

December 2010: On an appeal by Sahara on December 1, the Lucknow bench of the Allahabad High Court orders the watchdog not to take any coercive action until an order is passed. Read more of the story here

January 2011: A Delhi court issues a bailable warrant against Sahara India Group's chairman Subrata Roy and four other officials of the group on a complaint that they duped investors in a proposed housing project of Rs.25,000 crore, holding there was enough prima facie material to proceed. Read more of the story here

February 2011: The Delhi High Court stays proceedings against Sahara India Group's chairman Subrata Roy and four other officials in a Delhi court on a complaint that they duped investors in a proposed housing project. Read more of the story here

 May 2011: The Supreme Court directs Sahara India Real Estate to furnish the format of the application for an optionally fully convertible debentures (OFCD) scheme and a list of accredited agents raising money on its behalf after the firm claimed it was not liable if investors provided false address and other details.  

June 2011: Sebi directs Sahara firms to immediately refund the money collected through sales of OFCDs with annual interest of 15 percent.

 October 2011:The Securities Appellate Tribunal (SAT) orders two unlisted Sahara Group companies to refund within six weeks about Rs 24,000 crore that they had raised through a controversial flotation of OFCDs three years ago. Read more of the story here 

November 2011: The Sahara group moves the Supreme Court challenging the SAT’s order asking the company to refund the money raised through OFCD to investors within six weeks. Read more of the story here

November 2011: In a relief to Sahara group, the Supreme Court stays the SAT order directing its two companies to refund around Rs 17,400 crore to their investors and asked for the details of their assets and liabilities. Read more of the story here

January 2012: The SC gives Sahara Group companies three weeks’ time to choose between two courses to secure the investments made by the public in the OFCD scheme -- either to give sufficient bank guarantee or attach properties worth the amount. Read more of the story here. 

March 2011:Sahara India Real Estate Corp voices its grievance over a news channel reporting its proposal made to the Securities and Exchange Board of India on securing the money it mopped up from the market.  Read more of the story here

April 2011: While protecting the rights of an accused to a free and fair trial not prejudiced by media reporting, the Supreme Court should not cross the 'Lakshman Rekha' of reasonable restrictions provided in the constitution, a senior lawyer contends. Read more of the story here 

May 2012: The Supreme Court is informed that the stock market regulator could not have taken up the issue of Sahara group of companies mopping up Rs.17,400 crore through debentures and ordered their refund.

Senior counsel Fali Nariman, appearing for Sahara India Real Estate Corp, told the apex court bench of Justice K.S. Radhakrishnan and Justice J.S. Khehar that the Securities and Exchange Board of India (SEBI) took up the matter even though there was no complaint from any investor. Read more of the story here

June 2012: The SEBI tells the Supreme Court that the real estate arm of the Sahara group of companies had no right to mobilise Rs.27,000 crore from 30 million investors through debentures without complying with the regulatory regime. Read more of the story here

June 14, 2012: The Supreme Court reserves its verdict on a plea by Sahara group of companies, dealing in real estate and housing, challenging a tribunal's direction to repay money collected from investors through debentures.  Read more of the story here 

August 2012: The Supreme Court directs Sahara group's real estate company to return with a 15-percent interest the Rs.17,000 crore ($3.5 billion) it had mopped up as debentures from investors. Read more of the story here

October 2012: The Sahara group moved the Supreme Court, seeking the review of its Aug 31 verdict directing Sahara to return to investors Rs.17,400 crore with 15 percent interest that it had mopped up through Optionally Fully Convertible Debentures (OFCDs) in 2008 and 2009. Read more of the story here

October 19, 2012: The Supreme Court tells market regulator SEBI that it was free to initiate action against two real estate companies of the Sahara group if they fail to take steps for the refund of investors' money as directed by the apex court. Read more of the story here

November 2012: Sebi files a contempt petition against Sahara claiming it had not furnished the investor documents within the court stipulated time. The Sahara group in response moved the Securities Appellate Tribunal (SAT) in protest against market regulator Sebi's refusal to extend the deadline for the submission of documents relating to the bond flotations by two unlisted group firms. Read more of the story here

November 29, 2012: Gopal Subramaniam, senior counsel, appearing for the appellants (SIRECL and SHICL)  argued in court that they were forced to approach the tribunal because of Sebi's refusal to accept the documents tendered by the Sahara entities.

He also expressed the apprehension that a pay order of Rs 5,120 crore to repay the amount to the investors who subscribed to the optionally fully convertible debentures (OFCDs) would not be accepted by Sebi.

There is no clarity on how the Sahara group had arrived at the sum of Rs 5,120 crore when the Supreme Court had directed it to refund Rs 17,400 crore along with 15 per cent interest. Read more of the story here

December 2012:Sahara Group moves the Supreme Court after SAT rejects its appeal against SEBI. Read more of the story here

The Supreme Court , however, lashed out at Sahara group's real estate companies saying their conduct was "shady" in the matter of returning the investors' money mopped up under optionally fully convertible debentures scheme. Read more of the story here

December 5, 2012: The Sahara Group gets a temporary reprieve from the SC. The Supreme Court directed the Sahara group to refund Rs 24,000 crore to its three crore investors in nine weeks amid stiff opposition from Sebi and depositors over staggered payments. The Supreme Court asked market regulator SEBI to accept their pay order of Rs.5,120 crore as part payment of the investors' money they had collected through optionally fully-convertible debentures (OFCD). Sahara India Real Estate Corporation and Sahara Housing Investment Corporation - would deposit remaining amount in two installments. The court said that Sahara would deposit a sum of Rs.10,000 crore in the first week of January next year and the balance amount in the first week of February. Read more of the story here

January 2013:  Sahara misses the repayment deadline set up by SC. The company fails to deposit the second installment amount with market regulator. It was required to submit Rs 10,000 crore by January first week.The Supreme Court also dismissed the Sahara group's plea for a review of its verdict directing two Sahara firms to refund around Rs 24,000 crore to their investors with 15 per cent interest. Read more of the story here

February 2013: The Supreme Court tells market regulator Sebi that it was free to freeze accounts and seize properties of Sahara group's two companies for defying court orders by not refunding Rs. 24,000 crore to investors. Read more of the story here

Market regulator Securities Exchange Board of India also cautioned investors and the general public against dealing with two Sahara group companies -- Sahara India Real Estate Corp and Sahara Housing Investment Corp -- and their promoters. Read more of the story here

Sebi later sought the arrest of Sahara Subrata Roy.  Read more of the story here

March 2013: Sebi’s whole time director Prashant Saran orders Subrata Roy and three other directors of the Sahara group to appear before him at 3pm on April 10 and submit a list of all their assets and copies of their income and wealth tax returns from financial year 2007-08. Read more of the story here

April 2013: The Lucknow bench of the Allahabad High Court seeks a response from Sahara India and its chairman Subrata Roy on a PIL accusing them of denigrating SEBI through an advertisement in newspapers March 17. Read more of the story here

Sahara chief Subrata Roy, however responds that his group had repaid Rs 20,000 crore to its investors and it was the market regulator which was delaying repayments. He added that the Securities and Exchange Board of India (Sebi) should refund the balance Rs 5,000 crore already deposited with it to remaining investors. Read more of the story here

July 2013: Sebi files a contempt petition against Sahara in SC. Says company flouting SC direction to make refund. Read more of the story here

August 2013:The Securities and Exchange Board of India (SEBI) urges the Supreme Court to award maximum punishment to Sahara India's head Subrata Roy. Read more of the story here

October 2013: The Supreme Court directs the Sahara Group to give original title deeds of its assets worth Rs.20,000 crore to SEBI as a guarantee towards the payment of investors money. Read more of the story here

January 2014: The Supreme Court Tuesday turns down the plea by Sahara India group chief Subrata Roy to travel abroad to take care of his overseas business interests, saying that its nod was tied to the company showing that investors' money has been repaid. For more on this story; watch the video

 

February 26 2014: The Supreme Court Wednesday issued a non-bailable warrant against Sahara group chief Subrata Roy for failing to appear before it in person as directed at the court's last hearing. Roy was also given till March 4 to comply with the court's order. Read more of the story here

February 28, 2014:Sahara India chief Subrata Roy surrenders before the police, a day after they failed to trace him to execute a Supreme Court warrant for his arrest. Read more of the story here