IIFT Compendium 2012
• SC orders Sahara to refund Rs. 24,400 crore
The Supreme Court held that the economic offences committed by Saharas must be dealt with by an iron hand and directed the Sahara India Real Estate Corporation Ltd. (SIRECL) and the Sahara Housing Investment Corporation Ltd. (SHICL) to refund over Rs. 24,400 crore collected from 2.21 crore depositors through the optimally fully convertible debentures (OFCDs) by way of bonds. A Bench of Justices K.S. Radhakrishnan and J.S. Khehar said they should refund the amounts collected through Red Herring Prospectus (RHPs) dated March 13, 2008 (Rs. 17,400 crore) and October 16, 2009 (over Rs. 7,000 crore), along with 15 per cent interest to the Securities and Exchange Board of India (SEBI) from the date of receipt of the subscription amount till the date of repayment, within three months. The sum should be deposited in a nationalised bank bearing the maximum rate of interest. The court appointed the retired Supreme Court judge, B.N. Agrawal, “to oversee whether directions issued by this court are properly and effectively complied with by the SEBI (WTM) from the date of this order.
CAG pulls up hydro-power PSUs for project delays
The functioning of state-run power companies has come under strong criticism from the Comptroller and Auditor General (CAG). The CAG has faulted NHPC, THDC, SJVN and NEEPCO for poor implementation of their hydro power projects, resulting in Rs.14,700 crore cost over-runs. CAG has stated that delay in implementing 16 hydro power projects by power PSUs leads to cost over-runs of Rs.14,700. Out of the 16 projects, as many as 11 are being implemented by NHPC. The company is a joint venture partner with the Madhya Pradesh government in another project. There are two plants of NEEPCO and one each of THDC and SJVN. All these 16 hydro plants together have a generation capacity of