Sahara companies gave each other Rs 16,000 crore in cash
Mar 12, 2014
Source : The Times of India

 

DELHI: Asked by the Supreme Court to give bank transaction details of Rs 20,000-odd crore they claimed to have refunded to investors, Sahara group companies on Tuesday said they had transferred cash from one company to the other and had not resorted to banking instruments.

"This is unbelievable stuff," market regulator Sebi's counsel Arvind Datar said. He told a bench of Justices K S Radhakrishnan and J S Khehar that contrary to the court's January 27 order, the Saharas had informed that "everything was paid in cash" and furnished no bank statement to substantiate transaction of huge amounts of money.

From the five volumes of transaction details furnished by Sahara India, Datar pointed out that Sahara Credit Cooperative Society had paid Rs 13,666 crore in cash on behalf of Sahara Real Estate to Sahara India, while Sahara Qshop had paid Rs 2,578 crore on behalf of Sahara Housing in cash to Sahara India for refund to investors.

"And they claimed that all these monies were returned to the investors in May-June 2012," Datar said. But the bench said at that time, the two companies - Sahara Real Estate and Sahara Housing - were contesting Sebi's orders against refund and had never uttered a word about refunds having been made. The SC on August 31, 2012 had directed the two companies to return more than Rs 24,000 crore to investors.

Datar also informed the bench that the Sahara firms had given a DVD with details of refunds, which contained data about the companies having returned Rs 29,878 crore to investors. "Where did the Sahara group get the additional Rs 4,500 crore from," Datar asked.

Taking the court through the details supplied by the Sahara firms, Sebi's counsel said the daily deposits by investors in various branches of Sahara India, which was collecting money on behalf of the sister concerns dealing with real estate and housing, were transferred to banks.

"So, if the money deposited by the investors on a daily basis was put in the bank, why were the refunds not made through banking instruments," Datar asked. The bench asked Sebi whether a company was permitted under Reserve Bank of India rules to deal with such huge amounts in cash.

The bench asked Sebi to prepare a flow chart of money transactions as reflected in the documents supplied by the Sahara firms. It also asked the market regulator to examine the saleability of the properties provided as security by the Sahara firms to cover the alleged default in refunds.

"You have the title deeds. Check them for their worth and find out whether they are genuine," the bench said and posted the matter for further hearing on February 20.

The bench had on August 31, 2012 directed Sahara India Real Estate Corporation Ltd and Sahara Housing Investment Corporation to refund Rs 24,029 crore irregularly collected from nearly 3 crore investors.

The Saharas have so far deposited Rs 5,120 crore, saying their liability was just a little over Rs 2,000 crore and that they were keeping the rest as adequate buffer in case additional claims cropped up.

 

 

 

 

 

Latest Realty News

SC body for probe into Kulwant's land deals
Mar 12, 2014
CHANDIGARH: National Scheduled Castes Alliance (NSCA) president Paramjit Saingh Kainth on Tuesday demanded a commission of inquiry to probe the alleged nexus between politicians and real estate entrepreneurs in Punjab, especially to probe the growth of realtor Kulwant Singh as a candidate of the ruling Shiromani Akali Dal (SAD) in the Lok Sabha elections.
Real-estate companies' ponzi scam worth over Rs 45,000 crore: CBI
Mar 12, 2014
DELHI: CBI claimed the documents recovered by it during searches at the premises of Delhi-based business groups PACL and PGF show they allegedly used ponzi scheme to cheat nearly five crore investors of Rs 45,0000 crore.
Roy's sons quit firm days before bond issue
Mar 12, 2014
DELHI: Sahara chief Subrata Roy’s sons, Sushanto and Seemanto, resigned from the board of Sahara India Real Estate Corp Ltd (SIRECL) days before the company issued its prospectus for the bonds that landed their father in jail.
Godrej Properties jumps after adding new project in Vikhroli
Mar 12, 2014
NAVI MUMBAI: Godrej Properties jumped 5.50% to Rs 180.30 at 13:36 IST on BSE after the company said it will develop a new project in Vikhroli through its agreement with Godrej & Boyce.
Many Sahara real estate projects still on drawing board
Mar 12, 2014
MUMBAI: Sahara City Homes, housing projects of the Sahara group’s real estate arm, have the tagline Jahaan Bassey Bharat (where India lives). A look at the progress in many of these, however, presents a different picture.
Infrastructural development boosting growth of Greater Noida
Mar 12, 2014
DELHI: With a lot of world-class infrastructure in place, many experts are now saying that Greater Noida has surpassed the developments in other NCR cities like Gurgaon and Faridabad
IT searches Hiranandani group in Mumbai, other places
Mar 12, 2014
MUMBAI: The Income Tax department today conducted searches at 20 locations of real estate major Hiranandani group in Mumbai and other cities in connection with alleged tax evasion.
DLF gets Rs 93.5 crore from IDFC against sale of Noida IT Park
Mar 12, 2014
DELHI: India's largest realty firm DLFBSE 0.06 % today said it has received Rs 93.5 crore from IDFCBSE -2.42 % as final instalment for acquiring an IT Park project in Noida.
Unitech sells 11 acres of land to pay LIC loan
Mar 12, 2014
DELHI: UnitechBSE 3.12 % has sold two plots of land in Mysore and one in Bangalore with a total area of 11 acres for more than 130 crore, a senior executive at India's fourth biggest real estate firm said. Part of the proceeds will be used for paying an overdue installment of a 200-crore loan taken from Life Insurance Corporation of India, he said, asking not to be named.
Delhi-NCR builders add value to lure end-users
Mar 11, 2014
DELHI: Realising the rise in purchasing power of the middle class youth and their additional demands, the Delhi-NCR based developers have started to coin new ideas for the value-addition like swimming pools, spas, landscape gardens, golf courses etc around the residential units inside the township they are offering.

Latest Realty News Of State

Realty Talk's