It is mandatory for bondholders of Sahara India Real Estate Corporation Ltd (SIRECL) and Sahara Housing Investment Corporation Ltd (SHICL) to have a bank account to receive their refund from SEBI.
In a press release on Friday, SEBI said that investors submitting their claims for refund have to furnish a certificate from their banker that their signature, address and photograph in the refund application matched with that of the bank.
SEBI also advised bondholders to open a bank account in case they did not have one.
This is in addition to the requirement of providing identity and residence proofs and details of their investments in the two Sahara companies. SEBI said that tax would be deducted at source wherever applicable and that PAN was mandatory for claiming exemption.
According to the Supreme Court’s order dated August 31, 2012, more than 2.96 crore investors were to be paid over Rs 24,000 crore as on August 31, 2011.
SEBI has asked investors to file their claims in a prescribed format. However, claims of genuine investors with multiple deposits will be kept on hold till further directions from the apex court, said SEBI. Traders said these bonds had been subscribed to by many who do not have a bank account even today, especially migrant labour, vegetable vendors etc.
Tejesh Chitlangi, Partner IC Legal, said: “SEBI does not have any choice but to verify the credentials of the person filing the claim for refund. This could lead to a delay in the process of refunding money to investors.”
Interestingly, a submission by the Sahara Group relating to an investor had intrigued Justice Jagdish Singh Khehar. Pointing to details of an investor ‘Kalawati,’ he said it is impossible to determine whether ‘Kalawati’ was invited to subscribe for the OFCDs, as a friend/associate/ worker/ employee or other individual connected in any manner with the Sahara India Group.