A SPECIAL court in Mumbai on Friday cancelled a non-bailable warrant (NBW) issued against Sahara Group chief Subrata Roy after he appeared before it. On April 1, a warrant was issued against Roy, which was challenged by him before the Bombay High Court. The HC had directed him to appear before the Securities and Exchange Board of India (Sebi) court on or before May 4 to cancel the warrant and furnish the bail bond.
Roy was present in the court on Friday and through his lawyer, advocate Ashok Saraogi, sought the cancellation of the warrant. In his application, he said that the Sebi authorities had made a statement before the HC that they were not interested in seeking his custody. He submitted that he was present before the court in compliance with the HC orders. The court directed Roy to give an undertaking, stating that he would attend the court proceedings on every stipulated date, as per the HC order. It further said that Roy can seek an exemption from appearance which will be decided on the merits. If a case is made out, there are “inevitable circumstances” due to which he cannot attend court. The warrant was cancelled after Roy furnished a bail bond of Rs 2 lakh.
The case pertains to Roy and two directors of Sahara Group firms for alleged violations of Sebi rules. Roy, Ravi Shankar Dubey and Ashok Roy Choudhary have been booked under Section 24 and 27 of the Sebi Act. Market regulator Sebi claims that the three raised Rs 24,000 crore without the mandatory Sebi approval required to make investors aware of the risks through the red herring prospectus. Under the Sebi rules, money raised from more than 50 persons requires its approval. In this case, it was raised from three crore investors through optionally fully convertible debentures, a Sebi official said.
Last year, the special court had issued a production warrant for the appearance of the three when Roy was in Tihar jail in Delhi. He is currently out on parole.