Subrata Roy, 3 others appear before Sebi

Sahara group chief Subrata Roy and three other top executives on Wednesday appeared before market regulator Securities and Exchange Board of India, which had summoned them in the high-profile case involving refund of an estimated Rs 24,000 crore (Rs 240 billion) to over three crore (30 million) investors.

Roy, along with Ashok Roy Choudhary, Ravi Shankar Dubey and Vandana Bhargava, were asked to come for personal appearance before Sebi's whole-time member Prashant Saran at the market regulator's headquarters in Mumbai.

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The summons for the four persons, as directors of two Sahara firms, were issued by Sebi on March 26, to examine them for ascertaining details of their personal assets, as also the investments and assets of the companies, to move ahead with sale of immovable assets for realisation of money to be refunded to the investors.

During their personal appearance, they have been asked to produce original title deeds of all assets and investments of the two firms, Sahara India Real Estate Corp Ltd and Sahara Housing Investment Corp Ltd.

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The two Sahara firms, SIRECL and SHCIL, have been asked by the Supreme Court to refund over Rs 24,000 crore to their bondholders within three months.

In this apex court order dated August 31, 2012, Sebi was asked to facilitate the refund after verifying genuineness of investors.

On December 5, the court gave additional time to Sahara group and asked it to make an immediate payment of Rs 5,120 crore (Rs 51.2 billion), followed by Rs 10,000 crore (Rs 100 billion) by the first week of January and the remainder by the first week of February.

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Police probe allegation about Sahara's threat to investors

According to another report, police have begun a preliminary inquiry against the Sahara group on a complaint that the latter was intimidating investors.

"We have initiated a preliminary inquiry following allegations that the investors are being intimidated by the Sahara group," said a senior official at Economic Offence Wing of the city police.

However, the officer refused to comment when asked if Sebi had made the complaint against Sahara group.

Now, Mumbai police will have to record the statements of top executives of the group during the inquiry.         

The officer also refused to comment if Sahara group's Chief Subrata Roy's statement would also be recorded during the inquiry.

The Securities Appellate Tribunal is scheduled to hear on April 13 the appeals filed by Roy and others against a previous Sebi order for attachment of their bank accounts, assets and investments.

The properties include those related to the group's Aamby Valley resort town near Pune, other real estate assets in Delhi, Mumbai and at other places across the country, shares, mutual funds and various other investments.

Later this month, the Supreme Court would also hear a plea by Sebi seeking orders for Roy's arrest and barring him from leaving the country.