The Securities and Exchange Board of India (Sebi) has found that a Sahara group firm has raised over Rs 14,000 crore in violation of rules and ordered the company and its then directors, including Subrata Roy, to refund the money with 15 per cent annual interest.

The market regulator has also barred the company, Subrata Roy and four other individuals from accessing and dealing in the securities market for a period of four years from the date of completion of refunds to investors.

The 54-page order passed by wholetime member Madhabi Puri Buch relates to Sahara India Commercial Corporation Ltd (SICCL) raising Rs 14,106 crore between 1998 and 2009 from nearly two crore investors through the issuance of optionally fully convertible debentures.

Sebi has passed this new order at a time legal dispute is going on in the Supreme Court over an earlier direction from the capital market regulator asking two other Sahara firms in 2011 to refund over Rs 24,000 crore raised via OFCDs.

While Sahara has been asked to refund the money to a special Sebi account under a Supreme Court-monitored repayment process, the group has been saying it has already refunded more than 98 per cent of the amount directly to investors and proof has been given to Sebi.

In SICCL, too, the Sebi order mentioned that the company made submissions that it had already refunded the money collected from the investors in cash, barring Rs 18 crore for which the bondholders did not turn up for the refund. However, the regulator pointed out that the company did not provide any proof for repayment through banking channels.

Sebi said the repayments to investors of SICCL must be done through non-transferrable bank demand draft or pay order.