SC rejects Sahara firms' plea against payment of Rs 19K crore - Times of India

The author has posted comments on this articleTNN | Feb 26, 2013, 04.31AM IST NEW DELHI: The Supreme Court on Monday clarified to Sahara India Real Estate Corporation (SIRECL) and Sahara Housing Investment Corporation (SHICL) that they should deposit nearly Rs 19,000 crore with market regulator Sebi or face attachment of assets and bank accounts. A bench of Chief Justice Altamas Kabir and Justices A R Dave and Vikramjit Sen refused to hear senior advocate Ram Jethmalani on learning that the two Sahara group companies had not honoured its December 5 order. On December 5, the court had relaxed the November 31 deadline for the two companies after they deposited Rs 5,120 crore with Sebi and promised to abide by the order directing them to deposit Rs 10,000 crore by January first week and the balance by February first week. Justices K S Radhakrishnan and J S Khehar had on February 6 issued notice to the two companies on Sebi's plea for initiation of contempt proceedings against them for not complying with the August 31 judgment. Sebi had informed the court that it had initiated process for attachment of assets and bank accounts of the companies for their failure to deposit the money and give documents relating to investors' identity. On Monday, Jethmalani pleaded for extension of the December 5 relief given by a three-judge bench headed by Justice Kabir. But, the bench asked: "Was this prayer made befo re another bench (of Justices Radhakrishnan and Khehar)? We had asked you to deposit Rs 10,000 crore by January first week and the balance by February first week. You have not done it." "We gave you more time to deposit the money and documents (than what was stipulated in August 31 judgment) to allow you to pay up so that the small and poor investors get back their monies. But, you went far beyond. You went to the other bench and made the same request. So, we are not in a position to entertain your application and we are not going to entertain it," the CJI said and dismissed it. Before the hearing could commence on application of Sahara group companies, Supreme Court Bar Association (SCBA) president and senior advocate M N Krishnamani requested the bench not to hear the application seeking modification of judgment passed by another coordinate bench. "Instead of giving room to rumours, please send the application for hearing before the other bench," Krishnamani said prompting the bench to ask: "Why do you pre-empt our right to say the same thing?" When the SCBA president said he as the leader of the bar had a duty to caution the bench, a generally soft-spok en CJI raised his voice and asked whether Krishnamani knew anything about the case. "Do you know what the case all about is? Tell us what do you know," the bench asked. When Krishnamani could not, the bench said: "Please find out about a case before making such submissions. We do not need unsolicited advice." The Sahara firms deposited Rs 5,120 crore with Sebi on December 5, claiming that they owed only Rs 2,620 crore to investors and the rest as buffer for any additional claim. They had moved an additional application seeking stay of the August 31 judgment and in the alternative seeking to give bank guarantee for Rs 10,000 crore, which was the first installment due in January first week. via Business - Google News http://news.google.com/news/url?sa=t&fd=R&usg=AFQjCNF7rSuZ2LR_A_hg3ygy-jbA5-sD6g&url=http://timesofindia.indiatimes.com/business/india-business/SC-rejects-Sahara-firms-plea-against-payment-of-Rs-19K-crore/articleshow/18684695.cms

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