Lok Sabha Question No. 270 (STARRED), answered on 2023-03-20
Subject: Fraud by Sahara India Group
Ministry: CORPORATE AFFAIRS
Asked by: Bhola Singh, Sukanta Majumdar

## GOVERNMENT OF INDIA

## MINISTRY OF CORPORATE AFFAIRS LOK SABHA STARRED QUESTION NO. *270 ANSWERED ON MONDAY, MARCH 20, 2023 PHALGUNA 29, 1944 (SAKA)

## FRAUD BY SAHARA INDIA GROUP QUESTION

*270: SHRI BHOLA SINGH: DR. SUKANTA MAJUMDAR:

Will the Minister of CORPORATE AFFAIRS be pleased to state:

कारपोरेट कार्य मंत्री

- (a) whether cases of financial fraud by the Sahara India Group companies are under investigation of Serious Fraud Investigation Office;
- (b) if so, the current status of the investigation and the steps being taken by the Government to nail the culprit;
- (c) whether the Government is planning to seize all the properties of Sahara India Group companies and their owners and if so, the details thereof;
- (d) if so, whether the Government proposes to arrest Sahara Chief as he failed to return the investments to public/SEBI instead indulged in full page newspapers advertisements  to  fool  Government/public  and  if  so,  the  action  taken  by  the Government in this regard;
- (e) whether the Government is aware that the family of Sahara Chief have taken citizenship in a foreign country, if so, the reaction of the Government thereto; and
- (f) the other corrective steps being taken by the Government to save the crores of investors?

ANSWER

The Minister of Finance & Corporate Affairs.

(वित्त और कॉर्पोरेट मामलों क े  मंत्री)

(SMT. NIRMALA SITHARAMAN) श्रीमती निममला सीतारामि

(a) to (f): A statement is laid on the Table of the House.

STATEMENT REFERRED TO IN REPLY TO LOK SABHA STARRED QUESTION NO. *270 FOR ANSWER ON 20.03.2023.

- (a)  &  (b):  Yes.  The  Ministry  of  Corporate  Affairs  assigned  investigation  under Section  212(1)  (a)  &  (c)  of  the  Companies  Act,  2013  to  Serious  Fraud Investigation Office vide order F. No. 04/117/2018- CL-II, dated 31-10-2018, into the affairs of the following companies:
- a) Sahara Q Shop Unique Products Range Limited (SQSUPRL)
- b)
- Sahara Q Gold Mart Limited (SQGML)
- c) Sahara Housing Investment Corporation Limited (SHICL)

On  the  request  of  SFIO,  the  Ministry  of  Corporate  Affairs  assigned investigation under Section 212(1) (c) r/w 219 of the Companies Act, 2013 to Serious Fraud Investigation Office vide order dated 27-10-2020, into the affairs of the following companies:

- a)
- b)
- c)
- d)
- e)
- f)
- Aamby Valley Limited
- Qing Ambay City Developers Corporation Ltd.
- Sahara India Commercial Corporation Limited
- Sahara Prime City Limited
- Sahara India Financial Corporation Limited
- Sahara India Real Estate Corporation Limited
- (c): As on date SFIO has not moved any application for attachment of properties in this case. However, the Securities and Exchange Board of India (SEBI) has informed that the Hon'ble Supreme Court has passed various orders in respect to two Sahara Group Companies namely Sahara India Real Estate Corporation Ltd., (SIRECL) and Sahara Housing Investment Corporation Ltd. (SHICL) as under:
- Order dated 31.08.2012 directed the companies and their Promoters and Directors  to  refund  the  amounts  collected  from  the  public  along  with interest @ 15% per annum to SEBI. The amount was to be  deposited in a Nationalized Bank bearing maximum rate of interest. SEBI to refund the amount  to  bondholders  of  SIRECL  and  SHICL  along  with  interest  on verification of relevant documents.
- Order dated 21.11.2013 directed Sahara Group of Companies not to part with any movable and immovable properties.
- Order  dated  04.06.2014  vide  which  Sahara  group  was  permitted  to sell/encash FDs, bonds and securities and deposit the maturity value/sale consideration in the designated bank account of SEBI.

SEBI vide order dated 13.02.2013 froze all the bank accounts of Sahara India  Real  Estate  Corporation  Limited,  Sahara  Housing  Investment Corporation Limited, Shri Subrata Roy Sahara, Ms.Vandana Bhargava, Shri Ravi Shankar Dubey and Shri Ashok Roy Chaudhary. SEBI also attached Sahara, Ms.Vandana  Bhargava,  Shri  Ravi  Shankar  Dubey  and  Shri  Ashok  Roy the movable/immovable properties of Shri Subrata Roy Chaudhary.

(d):  SFIO  has  not  made  any  arrest  in  the  matter  so  far.  Hoewver,  SEBI  has informed that with respect to two Sahara Group Companies namely Sahara India Real Estate Corporation Ltd., (SIRECL) and Sahara Housing Investment Corporation  Ltd.  (SHICL),  the  Supreme  Court  vide  order  dated  21.11.2013 directed Subrata Roy Sahara, Ashok Roy Choudhary and Ravi Shankar Dubey contemnor-directors of Saharas not to leave the country without the permission of the Supreme Court. Further, the Supreme Court vide order dated 19.06.2015 also directed Subrata Roy Sahara, Ashok Roy Choudhary and Ravi Shankar Dubey to deposit their passports in the Supreme Court within 15 days from the date of the order or before their release, whichever was earlier and they shall not leave the country without prior permission of the Supreme Court. Subsequently, the Supreme  Court  vide  orders  dated  06.05.2016  and  11.07.2016  directed  that Subrata Roy Sahara, Ashok Roy Choudhary and Ravi Shankar Dubey shall be under protective custody and shall be escorted during their period outside the jail by a team of police officials deputed by the Commissioner of Police, Delhi, headed by an officer not below the rank of Sub-Inspector of Police. These Police Officials shall report the presence of Subrata Roy Sahara, Ashok Roy Choudhary and  Ravi  Shankar  Dubey  to  the  respective  jurisdictional  police  station(s). Further, counsel appearing on their behalf assured the Supreme Court that at no point of time, Subrata Roy Sahara, Ashok Roy Choudhary and Ravi Shankar Dubey shall  make  any  attempt  to  either  escape  from  the  protective  custody  of  the escort team or otherwise leave the country especially when their passports are already  deposited  with  competent  authority,  which  was  also  recorded  in  the order of the Supreme Court dated 06.05.2016. SEBI also filed an Interlocutory Application dated 03.08.2022 before the Hon'ble Supreme  Court  to  restrict  Sahara  India  Group  of  Entities  from  issuing  any advertisement  or  statement,  in  any  manner  whatsoever,  in  respect  of  the proceedings in Contempt Petition(C) Nos. 412-413/2012 and Contempt Petition(C) No. 260/2013 presently being heard by the Hon'ble Supreme Court. (e): As per information provided by the directors in their DIN applications filed with MCA, Shri Subrata Roy Sahara, Smt. Swapna Roy, Shri Ashok Roy Choudhary and Shri Joy Broto Roy have reported that they are Indian Citizens. Smt. S. Roy has also indicated in her DIN application that she is resident of Macedonia. (f):  As  stated  in  Part  (d)  of  the  Question  that  SEBI  also  filed  an  Interlocutory Application  dated  03.08.2022  before  the Hon'ble Supreme  Court  to  restrict Sahara India Group of Entities from issuing any advertisement or statement, in any manner whatsoever, in respect of the proceedings in Contempt Petition(C) Nos. 412-413/2012 and Contempt Petition(C) No. 260/2013 presently being heard by t he Hon'ble Supreme Court.

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