India's Supreme Court orders Sahara to refund $3 billion raised from investors
September 1 , 2012
India's Supreme Court ordered the Sahara business group on Friday to refund $3 billion to investors after failing to comply with financial regulations.
Sahara, which sponsors the Indian cricket, hockey and Formula One teams, will also have to pay 15 percent interest.
The court supported a ruling by financial regulators that found that fundraising rules had not been adhered to.
Sahara began raising the money four years ago from 22 million small investors.
The court order said Sahara had "no right to collect" the funds "without complying with any regulatory provisions" and ruled the firm had to deposit the refunded money in a nationalized bank.
Sahara is involved in finance, housing, manufacturing and the media.
In recent years, it has expanded its footprint overseas with the purchase of a controlling stake in New York's landmark Plaza Hotel for $570 million.