Sebi ordered the attachment of Sahara India Real Estate Corporation (now known as Sahara Commodity Services Corporation), Subrata Roy, Ashok Roy Choudhary, Ravi Shanker Dubey and Vandana Bharrgava's bank and demat accounts in December to recover 6.42 crore
Sebi, the market regulator, announced on Tuesday that it had recovered pending dues totalling Rs 6.57 crore from Sahara India Real Estate Corporation, its CEO Subrata Roy, and others in the case involving the violation of norms in the issuance of optionally fully convertible debentures.
In its recovery order, the Securities and Exchange Board of India (Sebi) stated, “In view of the payment of the amount of Rs 6.57 crore due under the certificate, the said certificate is hereby completed.”
The total included interest and other fees.
In December, the regulator ordered the attachment of Sahara India Real Estate Corporation (now known as Sahara Commodity Services Corporation), Subrata Roy, Ashok Roy Choudhary, Ravi Shanker Dubey, and Vandana Bharrgava's bank and demat accounts in order to recover 6.42 crore for violating regulatory norms in the issuance of OFCDs (Optionally Fully Convertible Debentures). This sum included interest as well as all costs, charges and expenses.
These entities were subjected to recovery proceedings after failing to pay a Rs 6 crore fine imposed by Sebi in June 2022.
The case concerns Sahara India Real Estate Corporation and Sahara Housing Investment Corporation's issuance of OFCDs in 2008-09. Companies raised funds through the public offering of securities by issuing OFCDs without following the various processes specified by the norms to protect the interests of investors in public offerings.
According to Sebi, the two companies solicited subscriptions for the OFCDs from the general public across the country without adequately informing them about the risks associated with the instruments.
The issuance was allegedly done in violation of the provisions of the Sebi's ICDR (Issue of Capital and Disclosure Requirements) Regulations and PFUTP (Prohibition of Fraudulent and Unfair Trade Practices).