SEBI chairperson Madhabi Puri Buch said that Sahara matter will continue for the capital markets regulator even after the death of the group's founder Subrata Roy, as it is regarding the conduct of an entity.
Buch when asked why the refunds have been less, said the money returned through a Supreme Court-appointed committee was basis the evidence of the claims made by investors. It has been reported that refunds of only Rs 138 crore have been made to investors even though Sahara group was asked to deposit over Rs 25,000 crore with SEBI for further refund to investors.
Also Read: A tale of many twists: The rags to riches to downfall story of Sahara Group's Subrata Roy
Sahara Group chief Subrata Roy died due to a cardiorespiratory arrest at a private hospital in Mumbai on Tuesday after a prolonged illness. Subrata Roy faced multiple regulatory and legal battles in connection with his group firms that were accused of circumventing regulations with Ponzi schemes, allegations his group always denied.
In 2011, a financial scandal involving the Sahara Group Surfaced when discrepancies in housing bonds issued by Sahara India Real Estate Corporation and Sahara Housing Investment Corporation were brought to light by Chartered accountant Roshan Lal. These companies had raised substantial funds without proper accountability.
Subrata Roy was also imprisoned after the investigation by SEBI