Supreme Court Orders Sebi not to read further advertisements

In SEBI Sahara Case, today SEBI started its arguments on the contempt petition filed by SEBI alleging violation of the SC order dated 5-12-12 by Sahara. At the closing of arguments, counsel for SEBI stated that the arguments made by him also covered the contempt petitions earlier filed alleging breach of the order dated 31-8 -12 and argued that Shri Subrata Roy Sahara should also be held liable, besides the directors for the contempt. The Court however did not issue notice of contempt against Mr Subrata Roy Sahara, on the second contempt Petition.

Whilst referring to affidavit filed by Sahara on 4-1-12, SEBI argued that in the said affidavit undertaking has been given, which has been violated.   The Hon’ble Supreme Court also enquired with SEBI, as to how the said other group companies, which are independent legal entities, are bound by the said affidavit, filed by the two Sahara companies.  Counsel for SEBI indicated that this issue will be addressed by him separately. 

SEBI referred to an advertisement appeared in the news paper on 3^rd Sept. 2012 calling it as an instance of contemptuous conduct of Sahara. The Hon’ble Court, on referring to the said publication, observed that the same does not amount to contempt and indicated that SEBI may not read further advertisements.