New Delhi, Aug 31 (IBNS) The Supreme Court has directed the Sahara Group  to refund Rs. 17,400 crore it raised from small investors between 2008 and 2011 in violation of rules.

The Supreme Court order on Friday enforced the market regulator Securities and Exchange Board of India (SEBI)'s order last year asking the Sahara group to refund the money for not following the due rules.

The division bench of Justice KS Radhakrishnan and Justice JS Khehar also asked for 15 percent annual interest payment to the investors on their deposits.

It asked SEBI to take necessary action if the order is not followed. 

Former Supreme Court judge BN Agarwal will supervise the refund process, the court said.

 Sahara Group had raised the money through two of  unlisted companies - Sahara India Real Estate Corporation and Sahara Housing Investment Corporation. 

The money was collected through OFCD (optionally fully convertible debentures) with PSU banks.