Abstract

The paper will discuss elaborately as to how these two companies could raise such a huge amount and violated the various provisions of the Companies Act and SEBI Act. The current Sahara case will serve as an important precedent and will be considered as one that brought the focus on investor protection, not because the deceived investors staged a protest, but because of the highest court of the land which issued landmark orders on the violation of its regulatory framework, mandated compliance, and jailed the offenders. Through the course of this paper, the idea is primarily to critically analyze this case and throw light on each of the issue covered in the judgement. I have also made an objective effort to examine the justifications put forth by both the sides in their defense.

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