SAT allows Sahara to withdraw appeal against Sebi order in MF matter

Securities Appellate Tribunal allowed Sahara Group to withdraw the plea against Sebi order that directed Sahara Mutual Fund to wind up its schemes.

Earlier this month, Sebi had asked Sahara Mutual Fund to wind up all its schemes. Against this order, Sahara Group had moved the tribunal.

"Appellants are permitted to withdraw the appeal with liberty to file fresh appeal," SAT said in an order.


Sahara Asset Management Co, Sahara Mutual Fund and Sahara India Financial Corporation were the appellants.

The tribunal also said that "fresh appeal, if any, be filed by May 2, 2018, and if filed, the said appeal be placed for admission on May 3, 2018".

Sahara Group has been engaged in a long-running regulatory and legal battle with Sebi ever since it ordered refund of a massive over Rs 24,000 crore by two Sahara entities.

In July 2015, Sebi had cancelled Sahara Mutual Fund's registration saying it was no longer "fit and proper" to carry out the business and ordered transfer of its operations to another fund house. It had also directed cancellation of Sahara Mutual Fund's registration on expiry of a six-month period.

Earlier, Sebi had also cancelled the portfolio management licence of a Sahara firm.

Following the Sebi order, Sahara Mutual Fund had approached the tribunal which granted six weeks to the appellants to approach the Supreme Court. Subsequently, Sahara Mutual Fund had filed an appeal in the Supreme Court.

The appeal was dismissed by the apex court in October 2017. Thereafter, Sebi had instructed Sahara Mutual Fund to strictly comply with the timelines specified in its July 2015 order.

In its order, earlier this month, Sebi had modified its earlier directive.