Sahara chief Subrata Roy shows up at Sebi, claims assets of only Rs 5 crore
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Responding to the summons from the Securities and Exchange Board of India (Sebi), Subrata Roy, chief of Sahara Group said he had less than Rs 4 crore as personal assets against a demand from the regulator to cough up Rs 24,000 crore as refund to investors.
Roy appeared before Sebi whole time member, Prashant Saran, who had issued the summons, along with his three senior executives Ashok Roy Choudhary, Ravi Shankar Dubey and Vandana Bhargava. He later told reporters that Sebi asked him if he has any asset other than what has been disclosed and whether he wished to add anything.
"I replied back saying the assets which I declared are the only ones I have", Roy said.
According to his declaration he and his wife hold gold ornaments and stones worth Rs 3 crore, cash and bank balance of Rs 34 lakh and fixed deposits of Rs 1.59 crore.
The Sebi summons is in response to a Supreme Court order asking Roy to refund the sum raised by his two companies through the issue of bonds that were declared as illegal.
In a related development the economic offences wing of Mumbai police have begun an inquiry against the group on a complaint that the latter was intimidating investors as it was facing a refund case involving Rs 24,000 crore payment to over three crore investors.
The company in a press statement later said that Subrata Roy's personal assets are around Rs 3 crore. Roy further told that for buying sugar mill at Badauli he had taken an advance of Rs 11 crore and has no immovable property.
Sebi had issued summons to Subrata Roy and the three directors on March 26 in order to ascertain their personal assets, investments and the assets of companies so that it can move ahead with the sale of immovable assets to realise the money to be refunded to the investors. It has also ordered freezing of their assets and imposed a ban on sale of their immovable properties.