Sahara-Sebi case: timeline

Sahara Chief Subrata Roy was on Friday arrested in Lucknow, after he surrendered to police, two days after a non-bailable warrant was issued against him by the Supreme Court. Roy’s counsel, Ram Jethmalani told a bench headed by Justice K S Radhakrishnan that 65-year -old Roy is in police custody. Jethmalani also pleaded to the court for recalling of non-bailable warrant issued by it on February 26. He submitted that the special bench, comprising Justices Radhakrishnan and J S Khehar, which heard the case be assembled today to hear his application. Justice Radhakrishnan, who sat with Justice Vikramajit Sen, however, said that it is not possible for the special bench to assemble today.

This was in connection with a long legal battle between Sebi-Sahara, which started in August 2012. The Securities and Exchange Board of India (Sebi) had asked Sahara to refund over Rs 20,000 crore to investors.

Here is the timeline of events, which led to the arrest of Sahara chief.

November 24, 2010: Sebi stops the promoters and directors of two Sahara group companies, Sahara India Real Estate Corporation and Sahara Housing Investment Corporation, from raising money through the issue of securities: either equity shares, convertible debentures or any other securities.

December 13, 2010: An Allahabad High Court bench stays Sebi order

January 2011

*Supreme Court turns down Sebi’s plea to stop two firms from raising the capital from investors, but empowers it to ask for information and issue advertisements to inform investors that the issue is under investigation.

*Sebi issues a public notice on their website alerting investors against the buying debentures of Sahara India Real Estate Corp and Sahara Housing Investment Corp.

*Sahara India Real Estate sends a legal notice to Sebi.

April 2011

*The Allahabad High Court bench revokes stay

*Sebi issues a public notice cautioning investors about a ban on money mobilisation by two Sahara group companies.

*Sahara Group files a petition in the Supreme Court challenging the Allahabad High Court order, which asked it to share full details of investors participating in its fundraising exercise with Sebi. Sahara accuses Sebi of defaming the company.

May 2011: Apex court orders Sebi to progress with its investigation into financial instruments used by two Sahara group firms to raise money from the public.

June 2011: Sebi orders Sahara companies to instantly refund the money raised through sales of optionally fully convertible debentures (OFCDs) with yearly interest of 15 percent.

July 2011

*Sahara appeals in SC that Sebi has no jurisdiction. Seeks notice to Centre.

*SC orders Sahara to approach SAT against Sebi order on OFCDs

October 2011: SAT stands by Sebi order against Sahara to refund money.

November 2011: SC stays SAT order

January 2012: SC gives three weeks’ time to Sahara group companies to decide between two courses to secure the investments made by the public in the OFCD scheme -- either to give adequate bank guarantee or attach properties worth the amount.

August 31, 2012: A Supreme Court bench of Justice Radhakrishnan and Justice Khehar pronounces in support of Sebi and directs the two Sahara companies to return the full outstanding amount of over Rs 20,000 crore to its OFCD investors, alongwith 15 percent interest, within a time span of three months.

October 2012: Sahara companies file a review petition in the Supreme Court. Sahara argues it sent a truckload of documentation to Sebi within the 10-day limit. But Sebi did not accept it as the documents arrived on the 10th day, after office hours.

October 19, 2012: Sebi advances Supreme Court alleging Sahara’s non-compliance with the main ruling.

November 2012: Sebi files a contempt petition against Sahara asserting it had not provided the investor documents within the court fixed time.

December 2012: The Sahara Group gets a provisional deferment from the SC. The apex court grants it more time to refund the amount.

January 2013: Sahara misses the repayment deadline fixed by the apex court. The company fails to deposit the second installment amount with market regulator.

February 2013: SC declines to hear a plea demanding extension of deadline to repay investors’ money. Sebi moves in to attach properties of the group and group chief.

March 2013: Sahara approaches special appellate tribunal against Sebi’s move to attach properties. Sebi demands arrest of Roy, adding that most of records provided by Sahara are untraceable also implying several accounts were imaginary.

July 2013: Sebi files a contempt petition against Sahara in SC, saying company violating SC orders to make refund.

November 2013: Apex court bars Subrata Roy from leaving the country.

February 2014: SC issues non-bailable arrest warrant against Roy for failing to appear at a court hearing. Roy sought the cancellation of non-bailable arrest warrant. A team of Lucknow police raided Roy’s house to arrest him but failed to find him there.