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SEBI warns bond holders of 2 Sahara companies

First published: October 27, 2012, 12:24 PM IST | Updated: October 27, 2012
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SEBI warns bond holders of 2 Sahara companies
The SEBI notice said that investors had filed complaints saying they were being forced by Sahara agents to switch their investments to some of its other schemes.

New Delhi: The Sahara Group found itself in trouble on Saturday after market regulator Securities and Exchange Board of India (SEBI) issued a public warning to bond holders of two of its companies. The notice said that SEBI had received complaints from investors that they were being forced by Sahara agents to forcefully switch to some of its other schemes like the retail scheme Sahara Q Shop.

The notice further asked bondholders to hold on to the original documents relating to investment in bonds. It also asked the bond holders not to yield to pressure from Sahara or its agents to switch schemes.

Sahara has until the end of November to refund money received from investors and furnish documents to SEBI. Below is the full text of the notice by SEBI.

Sahara India Real Estate Corporation Ltd. (SIRECL)
Sahara Housing Investment Corporation Ltd. (SHICL)


The Hon'ble Supreme Court, vide its order dated August 31, 2012, has, inter alia, directed the above two SAHARA Companies (Saharas) to (a) refund the amounts collected by them through the red herring prospectuses (RHPs) dated 13.03.2008 and 16.10.2009, along with interest at 15% p.a. to SEBI within 3 months from the date of the said order, i.e. by November 30,2012; and (b) furnish all documents in their custody, particularly, the application forms submitted by subscribers, the approval and allotment of bonds and all other documents to SEBI so as to enable it to ascertain the genuineness of the subscribers as well as the amounts deposited, within a period of 10 days from the date of the order. The Hon'ble Supreme Court has further advised SSEBI to identify the subsribers who had invested the money on the basis of RHPs dated 13.03.2008 and 16.10.2009 and refund the amount to them with interest on their production of relevant documents evidencing payments after counter checking the records produced by Saharas.

The Saharas have not submitted the relevant documents to SEBI, as per the order of the Hon'ble Supreme Court. SEBI has been receiving complaints from investors that they are being forced by Saharas/their agents/officials to switch-over their investments to other schemes in Sahara Group Companies like Sahara Q Shop Unique Products Range Ltd., Sahara Credit Cooperative Society Ltd., etc. Some investors have also complained that their investments have been switched over to the said schemes of Sahara Group Companies without their consent.

In view of the above, the subscribers to the Bonds of SIRECL and SHICL are advised in their own interest:

1. To hold on to the original documents relating to their investments in the Bonds and to produce the same to SEBI when called for; and

2. Not to yeild to any pressure from any person, including Saharas or their agents, for converting or switching over their existing investments in the Bonds to any of their other schemes like Q Shop etc.

Please bring the details of any such instances to the notice of SEBI.

Subscribers may contact: SE Cell, Securities and Exchange Board of India, SEBI Bhavan, Plot No. CA-4, "G" Block, Bandra Kurla Complex, Bandra (East), Mumbai - 400 051. Tel. No. 022-26449211 Email: secell@sebi.gov.in