Complaints against Sahara Indi

Copy of the complaints against Sahara India---

The Chairman,
Securities and Exchange Board of India (SEBI),
Mumbai 400051

Subject- Enquiry and necessary action as regards various serious allegations against Sahara India and its subsidiaries

Dear Sir,

1.       Kindly refer to our Lt No-AT/Sahara/03 Dated- 02/01/2014 where we, Petitioner No 1, Amitabh Thakur, a UP Cadre IPS officer and Petitioner No 2, Dr Nutan Thakur, a social activist presented certain facts related to the alleged improper and illegal acts of Sahara India and its various subsidiaries/group companies.

2.       That the first fact enumerated was that while Sahara Q shop scheme was already there where the money was allegedly being collected in an improper manner and which needed a thorough enquiry, regarding which the petitioners have already moved the Hon’ble Allahabad High Court, Lucknow Bench in Writ Petition No 7955 of 2013 (M/B) (Amitabh Thakur and another vs SEBI and others), after inaction on the part of SEBI,  Sahara India is now collecting public money through a new scheme known as Sahara Credit cooperative society, which  has schemes like Sahara E shine which is allegedly a 8 year deposit/money collection scheme at 12% rate of return and Sahara A select which is a one year deposit scheme at 10% rate of interest. It also has a daily scheme called Sahara Minor which is a one year deposit scheme where one can deposit as less amount as Rs. 10 to 20 per day with an interest return and a returning scheme called Sahara M Benefit which is a monthly recurring scheme with 8% interest rate and money returned after 5 years. As per the information made available to us, Sahara Credit Cooperative society has registration with the Agriculture department, Ministry of Agriculture, Government of India and is collecting money in a manner against the rule of law as regards collection of public money.

3.       That it was also prayed that Sahara India Commercial Corporation Limited has Rajat Yojana and Swarn Yojana which allegedly was announced as a 10 year time period investment with 10% rate of return where after 4 years money could be taken back, where it was allegedly said that there would be a draw every month and a quarterly draw but till date no investor all over India is said to have been given any house as was promised in the scheme, despite the 10 year period having got completed. 

4.       That it was also alleged that the Bank account for all the subsidiary companies and affiliates of Sahara India, floated in different names, use only one Account, in the name of Sahara India, which is not as per the provisions of law

5.       That the petitioners had also provided as a copy of the transactions/vouchers by Sahara India from Makanpura office, Vadodara, Gujarat as regards Sahara India Real Estate and Sahara India Housing where money has been allegedly returned to the investors through Account payee cheque but 15% rate of interest as directed by the Hon’ble Supreme Court has not been given, while at the same time TDS has been deducted which is not correct 

6.       That a specific example of Thakkar family was been cited where Branch Manager of Nyaya Mandir branch Sri Bishwajit P Singh had made payment to the Thakkars who had invested money in Sahara Real Estate through his own personal bank account on 21/11/2012, though the same is being shown as having been returned as early as May 2012 and this incorrect documentation has also been submitted before the Hon’ble Supreme Court itself

7.       That the complaint had also presented many specific examples like that of Sri Rameshbhai B Kalwar, Sri Sanjay Parmar, Sri Indravadan Rathode and his wife Ms Tara I Rathode etc

8.       That it was prayed by the petitioners that the purpose of this complaint was to apprise of the facts and documents and to get the matter enquired as per the provisions of law because this matter concerns the interests of investors to Sahara India and all its subsidiary and allied companies all over India including Lucknow where the applicants reside.

9.       That the applicants also made it clear that they have nothing personal against Ms Sahara India and/or its subsidiaries and the only purpose to present this complaint was to get all these facts enquired so that the interest of the investors are saved

10.   That to the best of the petitioners’ knowledge, no action has been taken in the petitioners complaint so far

11.   That in wake of the recent happenings related with Sahara India, the petitioners’ complaint assume great significance as regards the interests of millions of investors who have invested their hard-earned money in many Sahara companies, which have a great possibility of having been undertaken against the law of the land, thereby jeopardizing the interests of these investors.

12.   That this is because as explained by SEBI in its final order through its whole-time member (WTM) on 23/06/2011 where SEBI examined the nature of OFCDs issued by Saharas and came to the conclusion that OFCDs issued would come within the definition of “securities” as defined under Section 2(h) of Securities Contracts (Regulation) Act, 1956.

13.   That this is because SEBI also found that those OFCDs issued to the public were in the nature of Hybrid securities, marketable and would not fall outside the genus of debentures. SEBI also found that the OFCDs issued, by definition, design and characteristics intrinsically and essentially, were debentures and the Saharas had designed the OFCDs to invite subscription from the public at large through their agents, private offices and information memorandum. SEBI concluded that OFCDs issued were in fact public issues and the Saharas were bound to comply with Section 73 of the Companies Act, in compliance with the parameters provided by the first proviso to Section 67(3) of the Companies Act. SEBI took the view that OFCDs issued by Saharas should have been listed on a recognized stock exchange and ought to have followed the disclosure requirement and other investors' protection norms

14.   That SEBI also held that Saharas were not justified in raising crores and crores of rupees on the premise that that OFCDs issued by them, were by way of private placement. SEBI, therefore, found that the Saharas had contravened the provisions of Sections 56, 73, 117A, 117B and 117C of the Companies Act and also various clauses of the Securities and Exchange Board of India (Disclosure and Investor Protection) Guidelines, 2000 Guidelines.

15.   That SEBI also held that SHICL had not complied with the provisions of Regulations 4(2), 5(1), 5(7), 6, 7, 16(1), 20(1), 25, 26, 36, 37, 46 and 57 of the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2009 Regulations.

16.   That having found so, SEBI directed Saharas to refund the money collected under the Prospectus dated 13.3.2008 and 6.10.2009 to all such investors who had subscribed to their OFCDs, with interest.

17.   That Saharas, aggrieved by the above mentioned order of SEBI, filed Appeal Nos. 131 of 2011 and 132 of 2011 before the Securities Appellate Tribunal and the Tribunal passed a common order on 18.10.2011, where it endorsed the views expressed by SEBI

18.   That aggrieved by the said order of the Tribunal, SIRECL filed C.A. No. 9813 of 2011 and SHICL filed C.A. No. 9833 of 2011 before the Hon’ble Supreme Court under Section 15Z of the SEBI Act where the Hon’ble Supreme Court almost fully endorsed the orders of SEBI and the Tribunal

19.   That it does not need any iteration that what held true for SIRECL and SHICL hold true in no less measure for the various schemes mentioned by the petitioners in their complaints dated 02/01/2014 as regards Sahara Credit cooperative society and Sahara India Commercial Corporation Limited

20.   That it is also prayed that any further delay in holding enquiry in this matter and not taking the required action in these cases would go against the interests of millions of helpless investors and would definitely be against public interest.

21.   That hence the applicants pray once again to kindly get the various facts enumerated in the complaint dated 02/01/2014 enquired immediately, so as to take all necessary actions as per the provisions of law, to bring the desired regulation and order in the financial market, thus saving the innocent investors.

Lt No-AT/Sahara/03                                                                                     Yours,
Dated- 28/02/2014
                                                                                                (Amitabh Thakur) (Nutan Thakur)
                                                                                                                                5/426, Viram Khand,
                                                                                                                                Gomti Nagar,
                                                                                                                                Lucknow- 226010
                                                                                                                                # 94155-34526, 94155-34525
                                                                                                                                email- amitabhthakurlko@gmail.com
                                                                                                                                nutanthakurlko@gmail.com

Copy to-
 1. The Principal Secretary, Office of the Prime Minister of India, New Delhi
2. The Secretary, Ministry of Corporate Affairs, Government of India, New Delhi
3. The Secretary, Ministry of Consumer Affairs, Government of India, New Delhi
4. The Secretary, Ministry of Agriculture, Government of India, New Delhi

To,
The Chairman,
Securities and Exchange Board of India (SEBI),
Mumbai 400051

Subject- Enquiry and necessary action as regards various serious allegations against Sahara India and its subsidiaries

Dear Sir,

1.       Petitioner No 1, Amitabh Thakur, a UP Cadre IPS officer, also active as regards issues of transparency and accountability in public life and Petitioner No 2, Dr Nutan Thakur, a social activist present certain facts in their individual capacity particularly in light of the facts and documents presented by Sri Indravadan Rathod from Vadodara, who previously worked in Sahara India as an agent along with his wife, but later got completely disenchanted and disillusioned as regards Sahara India due to its alleged dubious activities became a whistle-blower.

2.       That these acts relate to the alleged improper and illegal acts of Sahara India and its various subsidiaries/group companies.

3.       That the first fact enumerated to us is that after Sahara Q shop scheme through which Sahara India allegedly converted majority of the money it was supposed to refund as  per order dated 31/08/2012 of the Hon’ble Supreme Court in Sahara India Real Estate Company vs Securities & Exchange Board Of India (SEBI, for short) & others (Civil Appeal No. 9833 of 2011) as regards Sahara India Real Estate Corporation Limited and Sahara Housing Investment Corporation Limited, Sahara India is now collecting public money through a new scheme known as Sahara Credit cooperative society. This has schemes like Sahara E shine which is allegedly a 8 year deposit/money collection scheme at 12% rate of return and Sahara A select which is a one year deposit scheme at 10% rate of interest. As per the information made available to us, Sahara Credit Cooperative society has registration with the Agriculture department, Ministry of Agriculture, Government of India and is collecting money in a manner against the rule of law as regards collection of public money. It has also been said that despite repeated requests by Sri Rathode and even directions issued by the Ministry, the required information has not been provided.

4.       That in Sahara Q shop registered with the Registrar of Companies, Kanpur amount being collected, no mention is being made as regards the security amount and the maturity date. (copy enclosed)

5.       That as regards Sahara India Commercial Corporation Limited, there are Rajat Yojana and Swarn Yojana which allegedly was announced as a 10 year time period investment with 10% rate of return where after 4 years money could be taken back. It was allegedly said that there would be a draw every month and a quarterly draw. Since date no investor all over India is said to have been given any house as was promised in the scheme, despite the 10 year period having got completed.  (Enclosed)

6.       That it has also been told to us that the Bank account for all the subsidiary companies and affiliates of Sahara India, floated in different names, use only one Account, in the name of Sahara India, which is not as per the provisions of law

7.       That Sri Rathode has provided as a copy of the transactions/vouchers by Sahara India from Makanpura office, Vadodara, Gujarat as regards Sahara India Real Estate and Sahara India Housing where money has been allegedly returned to the investors through Account payee cheque but 15% rate of interest as directed by the Hon’ble Supreme Court has not been given, while at the same time TDS has been deducted which is not correct  (copy enclosed)

8.       That a specific example of Thakkar family (Sri Kanubhai R Thakkur, Ms Sudhaben K Thakkar, Ms Dipali M Thakkar, Ms Saraswati K Thakkar) has also been cited where Branch Manager of Nyaya Mandir branch Sri Bishwajit P Singh had made payment to the Thakkars who had invested money in Sahara Real Estate  21/11/2012 where Sri Rathode has himself been a witness. Since money invested in Sahara Real Estate was allegedly not been returned but was being transferred to Sahara Q shop and the Thakkars were insisting for getting their money paid back instead of getting it transferred to Sahara Q shop, hence allegedly to get the original documents related with Sahara Real Estate released in the wake of the Hon’ble Supreme Court order, the Branch Manager at Nyaya Mandir paid the money through his own personal bank account in November 2012 though the same is being shown as having been returned as early as May 2012. As per Sri Rathode, this incorrect documentation of having returned money to the Thakkars as early as May 2012 while actually returning it on 21/11/2012 has also been submitted before the Hon’ble Supreme Court itself (copy enclosed)

9.       That as regards Sahara Credit Cooperative, another company of Sahara India for collecting money, it is said that there is a daily scheme called Sahara Minor which is a one year deposit scheme where one can deposit as less amount as Rs. 10 to 20 per day with an interest return. There is also a returning scheme called Sahara M Benefit which is a monthly recurring scheme with 8% interest rate and money returned after 5 years. As per Sri Rathode, this scheme is against the provisions of law where money is being collected against the lawful provisions.

10.   That Sri Sanjay Parmar, an employee of Sahara India had asked for balance sheet of Sahara India credit cooperative society Limited for the years 2010-11 to 2012-13 by the Ministry of Agriculture to which the Ministry provided the Balance sheet for 2010-11 while as per Sri Parmar’s version, he was called in office on 29/11/2013, threatened in the office and forced to write that he does not need it which he had to do being a Sahara employee. He has now sent a complaint dated 05/12/2013 of the same to Sri D N Thakur, Director (Coop), Department of Agriculture, Govt of India. (copy enclosed)

11.   That there is also a specific complaint of Sri Rameshbhai B Kalwar r/o 71, Rajdhani society, tarani Vasaria road, Vadodara, Gujarat dated 05/12/2013 where he has alleged non-payment of money in Silver year Labh Yojana which he bought on 06/09/2003 (copy enclosed)

12.   That another complaint by Sri Rathode dated 24/10/2013 as regards Sahara India Real Estate Limited has also been presented to Ministry of Corporate Affairs but it seems to be still lingering due to non-cooperation by Sahara India Real Estate despite directions of the Office of Registrar, Kanpur dated 31/10/2013 (copy enclosed)

13.   That similarly a complaint by Ms Tara I Rathode forwarded by Kanpur ROC to Mumbai ROC through their letter dated 31/10/2013 is also unattended so far. (copy enclosed)

14.   That Sri Rathode has provided as documents as regards a few of these allegations which we annex with this complaint.

15.   That the purpose of this complaint is to apprise you of the facts and documents presented to us and to get the matter enquired as per the provisions of law because this matter concerns the interests of investors to Sahara India and all its subsidiary and allied companies all over India including Lucknow where the applicants reside.

16.   That the applicants also make it clear that they have nothing personal against Ms Sahara India and/or its subsidiaries and the only purpose to present this complaint to get all these facts enquired so that the interest of the investors are saved, being jeopardized presently as the various documents seem to suggest and state.

17.   That hence the applicants pray that after having enquired into the matter appropriate action as per the provisions of law may kindly be taken to bring the desired regulation and order in the financial market, thus saving the innocent investors.

Lt No-AT/Sahara/03                                                                                     Yours,
Dated- 02/01/2014
                                                                                                (Amitabh Thakur) (Nutan Thakur)
                                                                                                                                5/426, Viram Khand,
                                                                                                                                Gomti Nagar,
                                                                                                                                Lucknow- 226010
                                                                                                                                # 94155-34526, 94155-34525
                                                                                                                                email- amitabhthakurlko@gmail.com
                                                                                                                                nutanthakurlko@gmail.com

Copy to-
 1. The Principal Secretary, Office of the Prime Minister of India, New Delhi
2. The Secretary, Ministry of Corporate Affairs, Government of India, New Delhi
3. The Secretary, Ministry of Consumer Affairs, Government of India, New Delhi
4. The Secretary, Ministry of Agriculture, Government of India, New Delhi

Enclosure- All the relevant documents as regards various complaints mentioned specifically