The Jharkhand CID has uncovered a massive fraud by the Sahara Group, selling land in Jharkhand and Bihar at below-market prices through fake companies. Despite Supreme Court orders, Sahara violated regulations, failing to deposit proceeds into SEBI’s account or refund investors. Investigations recommend FIRs against several company directors involved in the scam.
The Jharkhand CID has uncovered a big land sale scam by the Sahara Group, where hundreds of acres in Jharkhand and Bihar were sold at a fraction of their market value through fraudulent companies and unauthorized individuals. The CID’s investigation has revealed that the group violated Supreme Court and SEBI (Securities and Exchange Board of India) directives, selling properties in Bokaro, Dhanbad, Begusarai, and Patna at prices significantly below their assessed value.
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Sahara Group Sold Properties Below Market Value
According to SEBI’s valuation, which was conducted in 2013, the prices of these properties had appreciated over the years. However, in 2022, Sahara sold them at much lower rates, defrauding investors and failing to deposit the proceeds into SEBI’s account, as required. The CID found that these illegal transactions were carried out through fake companies and unauthorized individuals, bypassing regulatory procedures.
The Group Violated Court Order in Land Sales
The Supreme Court had previously ordered the Sahara Group to refrain from selling any of its assets. Despite this, the group continued to sell properties, including 68.14 acres in Bokaro, Jharkhand and 28.39 acres in Begusarai, Bihar for far less than their actual value. The total value of the properties sold is reported to be in the range of several crores. Among those implicated in this illegal activity are several directors of Sahara India and Sahara Commercial Corporation, including Swapan Roy, Jayanato Roy, and OP Srivastava. The CID has recommended filing FIRs against these individuals, along with others who facilitated the sales.
In a concerning twist, CID’s inquiry also uncovered that the funds from these sales were transferred across various states and used for personal purposes instead of being deposited into SEBI’s account or refunded to investors. Some of the properties sold include land in Dhanbad’s Govindpur area, where a hospital is now being constructed. The ongoing investigation highlights the depths of the fraud, which includes the operation of over 4,799 fake companies by the Sahara Group, further misleading investors and diverting their funds. The sale of these properties not only violated court orders but also exposed a well-coordinated conspiracy aimed at cheating investors and evading accountability.
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Key Findings in CID Investigation
Illegal Sale of Assets: Sahara sold land at prices well below SEBI’s assessed values.
Funds Mismanagement: Proceeds from land sales were not deposited into SEBI accounts, nor were they returned to investors.
Fraudulent Operations: Fake companies and unauthorized individuals were involved in these transactions.
Supreme Court Violation: Sahara ignored the court’s order to stop selling its assets.
The CID’s report has raised serious concerns about the credibility and practices of the Sahara Group, further intensifying the public and legal scrutiny on the company’s financial dealings. Authorities have vowed to take stringent action against the guilty parties.
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