SEBI acting on 'old facts', says Sahara; shares jump 19%!
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- 2 of 9Two of India's most prominent businessmen-- Sahara Group chief Subrata Roy and Kingfisher Airlines owner Vijay Mallya-- are in for some troubled times.SEBI yesterday asked banks to freeze the assets and bank accounts of two Sahara group companies, saying they had failed to heed a Supreme Court order to repay investors in a case involving more than Rs 24,000 crore.Meanwhile, Vijay Mallya stands the risk of losing ownership of a range of possessions and assets including his Goa-located villa and the Kingfisher brand.
- 3 of 9A few days ago Supreme Court had said that SEBI is free to freeze accounts and seize properties of Sahara India Real Estate Corporation (SIREC) and Sahara Housing Investment Corporation (SHIC) for defying court orders by not refunding Rs 24,000 crore to investors.
- 4 of 9The apex court also pulled up SEBI for not taking action against the companies as per its August 31, 2012 order which had asked it to attach properties and freeze bank accounts of the companies.
- 5 of 9The latest order by Sebi could block development rights held by Sahara in Aamby Valley, 106 acres in Versova and 191 acres in Lucknow. The order attaches 90-95 per cent stake in around 64 projects in 64 towns across India, mostly under the name Sahara City Homes.Also, it is being speculated that all bank accounts and movable and immovable property in the name of Sahara Housing and bank accounts held by Subrata Roy himself could be ceased.
- 6 of 9What is the Sahara case?About 3 crore investors had put in Rs 24,000 crore in Sahara India Real Estate Corporation (SIREC) and Sahara Housing Investment Corporation (SHIC). The Supreme Court in August last year had asked Sahara group firms to refund the money with 15 per cent interest and had asked Sebi to facilitate the refund.However, the group in December, 2012 was allowed to pay the money in three instalments, including an immediate payment of Rs 5,120 crore, followed by an installment of Rs 10,000 crore in the first week of January and remainder by the first week of February 2012.
- 7 of 9In reply, Sahara Group has said it has already returned Rs 19,400 crore to investors, and only Rs 2,620 crore out of the rest Rs 5,120 crore needs to be refunded now.
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Meanwhile, sources say various banks intend to start the process of recovery of loan worth about Rs 7,500 crore from debt-laden Kingfisher Airlines over the next 7-10 days.
- 9 of 9SBI, which is the largest lender to Kingfisher, had said yesterday that 17 bankers, who have a cumulative outstanding of over Rs7,000 crore from the grounded Kingfisher Airlines, are holding collateral worth at least Rs6,500 crore from the airline, group companies and personal guarantees of promoter Vijay Mallya."If we include the value of the guarantees of UB Holdings (the holding company of KFA) as well as the personal guarantees of Mallya, the value of the collaterals available will be around Rs6,500 crore. I am not including the value of the Kingfisher brand," SBI Deputy Managing Director in charge of mid-corporates Shyamal Acharya told a TV channel.