Court cancels NBW against Sahara chief
A special SEBI court on Friday cancelled a non-bailable warrant (NBW) issued against Sahara chief Subrata Roy on March 31. The warrant was cancelled after Roy and other directors appeared before the court in the city on Friday.
The special court had issued the warrant against Roy along with three other directors after he failed to appear before the court. Roy had challenged the warrant in the Bombay high court which had directed him to appear before the SEBI court on or before May 3.
On his appearance, special judge Shayeda Razvi recalled the warrant on the condition that Roy will have to give a fresh undertaking to appear for each and every hearing.
The case dates back to the alleged violation by Sahara real estate corporation and Sahara housing investment corporation. The SEBI had filed a case in November 2012 for alleged violation. It is alleged that the companies had issued optionally fully convertable debentures to public at large in 2009 under the guide of private placement which is violation of the SEBI Act.
An officer on the condition of anonymity said that as per the Company Act, if a firm has to collect money from more than 50 people, it has to take money through recognised stock exchange without listing shares .
“They had collected around ₹2,4000 crore on the name of Sahara real estate corporation and Sahara housing investment corporation. This amounts criminal offence,” the officer alleged.
Roy and other directors of the companies have allegedly violated Section 24 of the SEBI Act, which if proved, a person can face imprisonment up to 10 years or fined ₹25 crore.
The complaint was filed in 2012 for the alleged violation that took place in 2009. The court was scheduled to frame charges which cannot be done without the presence of the accused. Hence, the court had asked the accused to appear before it. However, as the acccused failed to appear, a non-bailable warrant was issued.
The case has been adjourned to May 18 when the court will hear arguments on charges framed against Roy and others.