SEBI case against Sahara firms: Argument on framing of charges begin

Roy and other accused today filed applications seeking discharge from the case which may be heard on June 28.

Published: 08th June 2017 12:47 AM  |   Last Updated: 08th June 2017 12:47 AM   |  A+A-

SEBI (File | Reuters)

By PTI

MUMBAI: The prosecution today began argument on framing of charges in two cases filed by the Securities and Exchange Board of India (SEBI) against Sahara group chairman Subrata Roy and three others. Prosecutor Poornima Advani told the court that two companies promoted by Roy -- Sahara India Real Estate Corporation (SIREC) and Sahara Housing Investment (SHI) -- issued Optionally Fully Convertible Debentures (OFCD) in 2009 without stating correct facts in the prospectus and misleading the investors.

They had no approval for 'Red Herring Prospectus' from SEBI, and didn't list OFCDs on the stock exchange, she said. OFCDs were issued without executing debenture trust deed, appointment of debenture trustees and creation of security reserve for debenture redemption, she added.

Roy and other accused today filed applications seeking discharge from the case which may be heard on June 28.

Meanwhile, Roy's doctor, R N Jain, filed an affidavit stating that Roy could not attend the court last month as he was undergoing treatment for gastroenteritis.

However, Advani said that Roy was not at his house during the period when he was supposedly undergoing treatment.

Besides, the ailment does not require bed rest and he could have attended the court, she said. Judge M G Deshpande said he was not "adjudicating" this matter. "My limited purpose was to ensure Roy's presence before the court," the judge said. Apart from Roy, three directors of Sahara group firms are accused in the case.

Stay up to date on all the latest Nation news with The New Indian Express App. Download now
(Get the news that matters from New Indian Express on WhatsApp. Click this link and hit 'Click to Subscribe'. Follow the instructions after that.)

Comments

Disclaimer : We respect your thoughts and views! But we need to be judicious while moderating your comments. All the comments will be moderated by the newindianexpress.com editorial. Abstain from posting comments that are obscene, defamatory or inflammatory, and do not indulge in personal attacks. Try to avoid outside hyperlinks inside the comment. Help us delete comments that do not follow these guidelines.

The views expressed in comments published on newindianexpress.com are those of the comment writers alone. They do not represent the views or opinions of newindianexpress.com or its staff, nor do they represent the views or opinions of The New Indian Express Group, or any entity of, or affiliated with, The New Indian Express Group. newindianexpress.com reserves the right to take any or all comments down at any time.

flipboard facebook twitter whatsapp