SEBI's latest refund order goes against natural law: Sahara

Sahara India Commercial Corporation (SICCL) on Friday said that market regulator SEBI`s order to refund Rs 14,000 crore to the company`s investors with annual interest of 15 per cent goes against the spirit of natural law.

In a statement here, SICCL said that it has "already discharged all its Optionally Fully Convertible Debentures (OFCD) liabilities except for Rs 17 crore as outstanding OFCD liability towards 54,804 members". 

The tax deducted at source (TDS) on interest paid has been deposited with the Income Tax Department, it added.

"We consider the recent order passed by SEBI as totally against the spirit of natural law. While taking the decision, SEBI once again has overlooked the hard facts and situations that very much prevailed at the time when SICCL issued OFCDs in 1998," it said.

The company also said that it would take up the matter at the "appropriate platform".

In an order dated October 31, the Securities and Exchange Board of India (SEBI) said the company had raised Rs 14,000 crore in violation of rules and ordered SICCL and its then directors, including Subrata Roy, to refund the money along with 15 per cent annual interest.

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The regulator also barred the company and its then directors and associated entities from the markets and from associating with any public entity.