The Securities and Exchange Board of India has asked investors in Sahara’s collective investment scheme to apply for their refunds by September 30.
A half-page newspaper advertisement said that claims after the deadline would not be entertained.
“Claims recieved after September 30, 2014 shall be returned to the applicant at his/her sole risk and responsibility,” it said.
A request for comment to a Sebi spokesperson did not immediately recieve a reply.
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The regulator has asked investors to provide proof of identity, proof of address and bank account details in addition to details of the investment they made. Their application should include the name of the company, the name of the scheme and the account number, said the advertisement.
Two Sahara group companies, Sahara India Real Estate Corporate and Sahara Housing Investment Corporation, had raised about Rs.24000 crores from investors.
The stock market regulator had found that the fund raising was done in violation of existing rules. It passed an order asking Sahara to stop fund raising activities in November 2010.
The legal battle that followed went all the way to the Supreme Court. The apex court endorsed Sebi’s view and asked Sahara to refund the amount to its 30 million investors by giving the money to Sebi, who is to carry out the refund process.
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Sahara put up Rs.5120 crore and said this is twice the amount remaining to be refunded. It claimed that only Rs.2610 crore remained to be refunded, and that it had already direcly refunded investors the remainder of over Rs 20,000 crore.
Both the Supreme Court as well as Sebi have refused to entertain the argument. Sebi has claimed that dues have now swollen to Rs.39000 crore, with interest.
Subrata Roy Sahara has been in jail since March 4, alongwith Sahara group directors Ravi Shankar Dubey and Ashok Roy Choudhary.
The court had granted bail conditional to a payment of Rs 10,000 crore, half in cash and the other half in bank guarantees. The group has so far deposited around Rs 3,100 crore.
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Efforts are ongoing to sell its overseas assets in a bid to raise the necessary capital. Its overseas assets include London’s Grosvenor House Hotel and New York’s Plaza and Dream Downtown hotels.
Subrato Roy Sahara has been negotiating the sale from Tihar jail.
Meanwhile there have been few genuine investors identified, according to Sebi. So far the regulator has been able to identify and refund genuine investments of Rs 1.08 crore, according Sebi representations in the Supreme court.