SC rejects Sahara group's review petition on OFCD refund order

The Supreme Court has dismissed a petition filed by the Sahara group seeking a review of its earlier order to refund Rs24,000 crore raised by two group companies through optionally fully convertible debentures (OFCDs) to investors.

The SC had, in its 31 August 2012 order, directed Sahara group firms Sahara India Real Estate Corporation Ltd (SIRECL) and Sahara Housing Investment Corporation Ltd (SHICL) to refund Rs24,000 crore with 15 per cent interest thereon to investors of its OFCDs for non-compliance of market regulations.

Dismissing the review petition, a bench headed by Justice K S Radhakrishnan said the applicants have no locus standi to move the review petition and that there was no inconsistency of views expressed in the court's previous order.

The court, however, did not keep up with its stance that the review petition would be heard by the same bench that gave the 31 August order as both Justice Radhakrishnan and Justice Khehar were on different benches.

The Sahara Group had, early last month, managed to buy time to repay its investors Rs24,000 crore that it is accused of having raised under false pretexts.

The SC had then directed it to immediately make payment of Rs5,120 crore and pay the balance in two installments - Rs10,000 crore in the first week of January, and the remaining in the first week of February.