3 Sahara Group Companies Under SFIO Probe; Agency Yet To Submit Report: Government

Union minister Rao Inderjit Singh on Monday said three Sahara group companies are being probed by the Serious Fraud Investigation Officer but no investigation report has been submitted to the central government.

In a written reply to the Lok Sabha, the Minister of State for Corporate Affairs also said look out circulars have been issued by SFIO against the persons involved in the fraudulent activities relating to the companies under investigation.

Through an order dated October 31, 2018, the corporate affairs ministry had asked the Serious Fraud Investigation Office to probe three Sahara group companies.

The companies are Sahara Housing Investment Corporation Ltd., Sahara Q Shop Unique Products Range Ltd. and Sahara Q Gold Mart Ltd.

"No investigation report has been submitted by Serious Fraud Investigation Office to the central government," Singh said in the written reply.

Besides, the ministry had ordered investigation against six Sahara group companies under Section 219 of the Companies Act, 2013.

This section provides power to the government to investigate the affairs of a company.

The six companies are Aamby Valley Ltd., Qing Ambay City Developers Corporation Ltd., Sahara India Commercial Corporation Ltd., Sahara Prime City Ltd., Sahara India Financial Corporation Ltd. and Sahara India Real Estate Corporation Ltd.

To a query on the steps taken by the government to ensure Sahara Chief would not flee the country on the lines of other financial fraudsters, the minister said, "look out circulars have been issued by Serious Fraud Investigation Office against the persons involved in the fraudulent activities relating to the companies under investigation."

"Any arrest under the provisions of Companies Act, 2013 is on need basis and at present there is no such proposal," Singh said in response to a question on whether the government will arrest Sahara Chief as he failed to return the investments to public/ SEBI instead indulged in full page newspapers advertisements to fool government/public.

Responding to another query on whether the government is aware that the family of Sahara Chief have taken citizenship in a foreign country and if so, the other steps being taken by the government in this regard, Singh said, "during investigation into the affairs of company, citizenship of individual does not impede action under the provisions of the Companies Act, 2013."