‘A bank account is a must to get the refund’

The Securities and Exchange Board of India (SEBI) has initiated the process of refund for the genuine investors of Sahara companies. These companies were asked return the funds by the Supreme Court.

Investors who have submitted / would be submitting their claims, would be returned their money after verifying the genuineness of the documents, said SEBI in a release on Tuesday.

The order of the Supreme Court on May 8, 2013, permitted the refund of the money so far deposited with SEBI by Saharas to the genuine investors with interest.

However, SEBI said that as far as genuine investors with multiple deposits were concerned, their claims would be kept on hold till further directions from the Supreme Court.

The Supreme Court on August 31, 2012, ordered the refund of an estimated Rs.24,000 crore to bond holders of the two firms of Sahara Group — Sahara India Real Estate Corporation Ltd. (SIRECL) and Sahara Housing Investment Corp Ltd. (SHICL).

SEBI, has been asked by the apex court to facilitate the refund. Later in December 2012, the companies were given additional time till first week of February 2013 to return the money.

After the Sahara companies’ failure to comply with the court order, SEBI on February 13, 2013, passed an attachment order against the two firms and their top executives, asking them also to provide details of their assets within 21 days.

Sahara Group has so far paid Rs.5,120 crore to SEBI towards the refund and claims that this amount itself is higher than the total outstanding dues of the two firms’ bondholders.

PTI reports:

SEBI also asked the ‘genuine investors’ of the two Sahara firms to provide their personal and investment details to get back money directly into their bank accounts.

A bank account is a must to get the refund, and those without it have been asked by the market regulator to open an account with a scheduled bank.

The case relates to refund of an estimated amount of over Rs.24,000 crore raised through ‘various illegalities’ by Sahara India Real Estate Corporation Ltd (SIRECL) and Sahara Housing Investment Corporation Ltd (SHCIL) by issuance of certain bonds.

The details sought from the investors in their refund application form include names, addresses, Sahara account numbers, the number of bonds, the amount invested, and the mode of investment (cash, cheque or draft).

The investors have also been asked to provide their photographs, ID proof, address proof, bank account details and their original bond certificates.

The bondholders have also been asked to furnish a bank certificate in a prescribed format, giving details for electronic transfer of money to their accounts.

The investors have also been asked to provide relevant documentary proof if there has been any change in their address or marital status since the time of their investment.

Besides, SEBI said income tax would be deducted at source, wherever applicable, unless a prescribed form to claim exemption from deduction of tax at source is received along with refund application in accordance with the relevant provision of the Income-tax Act.