March 26, 2014
The Sahara Group on Tuesday submitted a fresh proposal in the Supreme Court seeking to repay Rs. 20,000 crore in five instalments spread over a year, with an initial deposit of Rs. 2,500 crore to Securities and Exchange Board of India (SEBI) within three days.
The company said: “The amount raised by Sahara by issuance of OFCDs [Optional Fully Convertible Debentures] is Rs. 25,781 crore; the amount deposited on December 5, 2012, Rs. 5,120 crore; the amount credited to SEBI by various banks (approximately), Rs. 21 crore. The total amount to be paid comes to Rs. 20,640 crore.”
“Upon acceptance of this proposal on March 25, Sahara will make the payment of Rs. 20,000 crore to SEBI in the following manner: Rs. 2,500 crore within three working days of the restriction on operation of bank accounts/deposits being lifted; Rs. 3,500 crore by June 30, 2014; Rs. 3,500 crore by September 30, 2014; Rs. 3,500 crore by December 31, 2014; and Rs. 7,000 crore by March 31, 2015.”
It wanted the court to permit the Sahara Group to give an irrevocable bank guarantee at any time for any unpaid amount then due (plus the amount made available by SEBI for obtaining the bank guarantee) or for all the remaining unpaid amounts, instead of cash.
To enable the group to furnish the bank guarantee(s), the amounts (other than the sum of Rs. 5,120 crore, which shall remain with SEBI) lying with SEBI may in such an event, to the extent necessary for obtaining the bank guarantee, be deposited with the bank, which is furnishing such guarantee.
The proposal said: “To enable Sahara to generate the necessary funds to make the first and subsequent payments, this court ma
It wanted all restrictions imposed by the SEBI to be withdrawn upon making the first payment of Rs. 2,500 crore. The title deeds of the assets, which were deposited with SEBI pursuant to the October 28, 2013 order as security may continue with SEBI and be returned to Sahara, only when it needs “to dispose of/leverage the said assets so as to enable them to honour the payment obligation here under or to provide bank guarantee.”
It wanted SEBI to forthwith undertake examination and verification of the documents and refund to all investors (holding single or multiple accounts), who file their claim, subject to verification, and shall also involve Sahara in such a process. “Sahara would offer all assistance as may be required by SEBI…”