Sep 3, 2012

Hamara Sahara [247/365]

'My brains'            SOURCE: Reuters.in
So what if our government is running around like a headless chicken, atleast our Supreme Court has reached puberty.

In one of the biggest financial blows to a corporate group, the SC has ordered two companies within the Sahara group to pay back Rs 24,029 crores (about $3billion) to 2.21 crore investors within three months. With 15% simple interest per annum. Ka-ching!

One of the biggest in terms of financial penalty levied, a judgement like this is something that makes you sit up and wonder.
While many are wondering if this could mean the death of a 'rags to riches' conglomerate spanning infrastructure, power, retail, sports and hospitality, there are some who think this is a measure that was necessary albeit a little delayed.

Moments after the verdict was announced, the Sahara group released a press release that sought to soothe and comfort frazzled investors. In a poorly worded statement that reeked of bad penmanship it said,  “Sahara is the most honest custodian of your money and by the grace of God, we are so healthy that there cannot be even one day delay in any payment commitment of Sahara”. If you ask me, this statement and full page response that appeared on all national newspapers sounded like it came off the mouth off of a village uncle. Its wikipedia page has no mention of this judgement and is a poor attempt at advertising themselves.

Our regulatory boards have grappled with financial irregularities with Indian companies for a couple of years now. While Sahara attempts to cough up 35% of its revenue over the next couple of months, a more important issue will be how verdicts like this will make life tough for honest companies trying to woo investors.
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