Sahara Group has hit back at Sebi chairman U K Sinha over the bitter question of refunds, terming the regulator statement as "irresponsible".

On Wednesday, Sebi Chairman U. K. Sinha had voiced concerns over increasing volume of grey market operations in the country, and questioned Sahara's claims that it had returned nearly Rs 20,000 crore to investors in cash. The regulator had questioned the credibility of the Lucknow-based group's claims.

Sahara hit back by calling the capital market regulator Sebi a `rich man's' body, and accusing it lacking in understanding of the country's poor investors.

The group said in a statement, "Such a responsible person (as Sebi chairman) should not give irresponsible statements that how and why Rs 20,000 crore repayments were made in four months and 90% was paid in cash."

The group added that most of its investors lived in villages or small towns, many of which lack banking facilities.

It further added that out of its nearly 3.07 crore investors in the two Sahara group real estate firms, around 1.33 crore investors had made investments of up to Rs 5,000 each. It also claimed that it made payments of up to Rs 20,000 in cash, which was in accordance with the country's law.

Sebi and Sahara have long been entangled in a bitter court battle over repayment of investors' money. Sahara recently challenged the regulator's decision to freeze assets of Sahara's two real estate firms as well as its chairman Subrata Roy.