In a major setback to the Sahara Group, the Supreme Court today directed two of its companies to refund around Rs 24,000 crore to their investors within three months with 15 per cent interest per annum.

In stinging observations against the companies for violating rules and regulations in raising funds from common investors, a bench of justices K S Radhakrishnan and J S Khehar said that such economic offences must be dealt with "iron hand".

It said that if the companies--Sahara India Real Estate Corporation (SIREC) and Sahara Housing Investment Corporation (SHIC)--fail to refund the amount then SEBI can attach properties and freeze bank accounts of the companies.

The Court also appointed one of its retired judges Justice B N Aggarwal to oversee the action taken by SEBI against the two Sahara firms.

"Saharas (SIRECL & SHICL) would refund the amounts collected through RHPs dated March 13, 2008 and October 10, 2009 along with interest @ 15% per annum to SEBI from the date of receipt of the subscription amount till the date of repayment, within a period of three months from today," the bench said.

SIREC had collected Rs.19,400.87 Crs on March 13, 2008 and SHICL had collected Rs 6,380.50 Crs. But the total balance on August 31 is Rs 24,029.73 Crs after premature redemption.

The group might have to fork out around Rs 38,000 crore as of now which includes Rs the principal amount of Rs 24,029.73 and interest of around Rs 14,000.

Taking into account the reluctance of the group in providing financial details including information about the investors, the bench said that the SEBI would probe into the issue.