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Business News/ Politics / Policy/  Supreme Court rejects Subrata Roy’s bail plea
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Supreme Court rejects Subrata Roy’s bail plea

Apex court asks the group to come out with a 'logical' and 'acceptable' proposal on paying `10,000 crore for Roy's release

Observing that the preliminary hearing has been ‘very productive’, SC asked the group to prepare its proposal by next week’s hearing. Photo: AFPPremium
Observing that the preliminary hearing has been ‘very productive’, SC asked the group to prepare its proposal by next week’s hearing. Photo: AFP

New Delhi: The Supreme Court on Monday asked the Sahara group to submit a concrete proposal to pay 10,000 crore to secure bail for its jailed chief Subrata Roy and two other directors, rejecting his plea for house arrest.

“Come out with a proposal which is logical and acceptable to us," said a bench comprising justices T.S. Thakur and A.K. Sikri.

The Sahara group appealed for the release of Roy and the two other directors from jail for a period of 60 days to arrange the bail set by the court at 10,000 crore, 5,000 crore of which is to be paid in cash and the rest in the form of a bank guarantee.

The bench heard extensive submissions from senior advocates Abhishek Manu Singhvi and Rajeev Dhawan stating that the release of the “three prime directors" was necessary to arrange the money.

The bench, however, was unwilling to allow this. “It is not in the spirit of the (bail) order to let you go before payment of the interim bail," the court said.

The three have been in jail since 4 March for failing to refund more than 20,000 crore to investors from whom two group companies raised the money through a scheme that the capital markets regulator ruled was illegal.

Sahara, as an alternative, suggested house arrest for Roy and the two others in their houses in Lucknow to facilitate negotiations for sale of 70 declared properties to raise the required money.

The Court, while declining house arrest, allowed it to secure the bank guarantee against its properties and sell one of them for the cash payment. Sahara had submitted that it had in its accounts a sum of 3,000 crore for the cash payment.

The court also requested the Securities and Exchange Board of India to suggest safeguards for the sale of the property.

Khushboo Narayan and PTI contributed to this story.

Sahara has filed a defamation case in a Patna court against Mint ’s editor and some reporters over the newspaper’s coverage of the company’s dispute with Sebi. Mint is contesting the case.

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Published: 19 May 2014, 06:29 PM IST
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