SC seeks details of Sahara's controversial debenture scheme
09 May 2011
The Supreme Court today directed Sahara India Real Estate to furnish a list of accredited agents raising money on its behalf as also the format of the application for its optionally fully convertible debenture (OFCD) scheme.
The bench also sought details of the OFCD concept and the rules that govern it.
"You have to explain the concept of OFCD and how the investors are coming and investing in it," a three-judge bench of the Supreme Court, headed by Chief Justice S H Kapadia said.
The SC directive comes after Sahara said it was not liable for any misrepresentation of facts by investors in their application for the OFCDs.
During the course of an ongoing court fight between the Sahara Group and the regulator, investor applications for the Sahara Group firm's OFCDs were found to have been containing false addresses and other details.
Soli Sorabjee, counsel for the Sahara Group, told the court that several investors had given incorrect residential addresses and other information and that the company should not be held liable for the failure of the investors.
