Sahara group slams SEBI for leaking biased information to media

On the same day that the Securities and Exchange Board of India (SEBI) moved the Supreme Court for the arrest of Sahara group founder Subrata Roy, on Friday, the company also accused SEBI of maliciously leaking news to media that has no substance.

The market regulator has also moved the court seeking to debar Subrata Roy from leaving the country after two companies of the group failed to comply with the court's order to refund Rs24,000 crore to investors.

The Sahara group issued a statement claiming that SEBI has asked for civil detention of the promoter and directors of the company ''knowing fully well that such provisions of Code of Civil Procedure (CPC), prescribing the same as a mode of execution of decree do not apply to SEBI…''

The Sahara group said the allegations were all one-sided and baseless.

The group further claimed that ''Under the SEBI Act, the application of CPC is clearly barred'' and added that ''no question of any such non-compliance on the part of Sahara officials arises in view of the entire unpaid amount having been deposited with SEBI and the records of redemption made submitted to them for verification''.

The Sahara group also accused SEBI of leaking information to media and seeking media publicity by filing the status report and interlocutory application (IA) in the Supreme Court.

The statement said that the court ''did not find any urgency and advised for listing of the matter in due course, after Holi vacations''.

Sahara also claimed that it has repaid all the outstanding liabilities expect for an amount of less than Rs5,120 crore, which it has paid to SEBI.