Supreme Court raps Sahara: Show and prove your source of funds

Does Sahara do all its business in cash, the Supreme Court asked today. This was an observation made by the court when Sahara's counsel said that most of the refunds were made in cash.

Sahara had claimed that it had refunded Rs 23,000 crore to the investors. The SC sought to know the exact source of the funds. The SC said that Sahara should tell it by September 16 about the source of the funds.

During the course of the arguments, the stock market regulator SEBI's counsel said that according to Sahara they had collected cash in trucks.

The counsel for Sahara, Kapil Sibal, however, shot back and told SEBI not to make bogus arguments and prejudice the court.

The court then asked Sahara about the source of income.

"It is difficult to digest that you paid Rs 23,000 crore to the investors in just two months. Prove your source of income," the court said.

Further, the SC also said that on the next date of hearing, Sahara, apart from telling it about the source of funds, must also show proof of the same.

The court also ordered that Sahara deposit Rs 300 crore with SEBI on September 16.

Sahara then sought the permission of the court to bring money from London, where it had got an advance against one of its properties, the Governor's House Hotel.

OneIndia News