NEW DELHI: The Supreme Court on Friday asked the Sahara Group to disclose sources from where it had raised Rs 25,000 crore and paid its investors in cash, observing that it is difficult to digest as such a huge amount “cannot fall from the heavens”.
“You (Sahara Group) tell us what is the source of this money? Did you get the money from other companies or other schemes to the tune of Rs 25,000 crore? Withdrew it from bank accounts? Or sold property to get it? It should be any of the three alternatives. Money did not fall from the heavens. You have to show from where you have got the money,” the court said.
“Though we don’t doubt the capacity of your client to pay crores of money to investors, that too in cash in two months... the entire explanation of the episode is difficult to digest. Tell us the source of the cash and there will be no need to open the Pandora’s box,” said a Bench headed by Chief Justice T S Thakur.
The Bench said it would hear the issue again on September 16.
“Show us the documents. How the money was lying in other schemes,” the Bench said after senior advocate Kapil Sibal, appearing for Sahara chief Subrata Roy, submitted that the group had raised the money and paid its investors in cash and that market regulator SEBI was running away from finding out crores of investors.
“This is your (Sahara’s) claim. SEBI has a very simple question. Please tell us from where you got the money. You tell us and we will close the case. You tell us how you raised Rs 25,000 crore in cash,” said the Bench.
Sibal said the group was open for any probe and even assuming that there is an apprehension that it is a case of black money, the group can be investigated but “if it’s black money, who is SEBI to investigate? It is a matter of Income Tax (Department)”.
The Bench also asked SEBI to respond after properly examining the plea made by Sahara group in its fresh application seeking permission to borrow money from a foreign entity for raising the amount to secure Roy’s interim bail.
“Was it lying in your bank account or you got it from schemes floated by you,” the bench said as Sibal tried to convince that the Group drew money from others schemes in which the investment was made. “I have already filed an affidavit,” Sibal said.