Sahara chief Subrata Roy to stay in jail as SC dismisses plea for house arrest

The bench however allowed Sahara to encash bank deposits and security to arrange Rs 2500 crore.

By: Express News Service Written by Utkarsh Anand | New Delhi | Updated: June 4, 2014 8:14 pm
Sahara Group chief Subrata Roy was on March 4 sent into judicial custody. (AP) Sahara Group chief Subrata Roy was on March 4 sent into judicial custody. (AP)

In a jolt to Sahara group and its chief Subrata Roy, the Supreme Court on Wednesday dismissed a plea to let him come out of prison and be placed under house arrest.

A bench of Justices TS Thakur and AK Sikri also junked the group’s request to modify the order whereby Sahara was asked to first furnish Rs 10,000 crore as security to enable Roy and two other directors come out of the jail.

The bench however allowed Sahara to encash bank deposits and security to arrange Rs 2500 crore and also sell other properties in nine cities to raise more money.

It also said that Sahara may charge immovable properties in Pune’s Ambey Valley to raise Rs 5,000 as bank guarantee.

However, after Sahara manages to raise money, it will have to approach a new three-judge bench since the court referred the case to a larger bench today.

As far as three properties in a broad were concerned, the court asked the group to adduce all the requisite documents and approach the new bench for further directions.

Last week, softening its stand on the release of Sahara Group chief Subrata Roy, the Supreme Court had said that Roy and the two directors cannot be lodged in jail and the group’s accounts attached when the court wants the group to arrange Rs 10,000 crore as security.

“You cannot keep them in jail and disable them from depositing money. You cannot have it both ways. You cannot stop them from selling properties, attach all their accounts and ask them to come out only when they can pay he money,” the bench had said.

The bench, however, also clarified that it could not modify the order passed by the previous bench regarding the quantum of security money.

It said it could lift the embargoes on selling properties and operating the bank accounts to enable them arrange money.

“The conditions may be onerous but the court that put you inside deemed such conditions to be appropriate. For this purpose, we will, however, allow you to sell and mortgage some properties subject to certain safeguards and satisfaction of the Sebi,” said the bench.

While reserving its order on Sahara’s fresh application for release of Roy and two other directors, the court also asked the group to produce “adequate communication” with Bank of China, the creditor, including its nod, for sale of three overseas hotels to raise the money.

The bench had said it wanted to have “a clear picture” of the outstanding liability of the Saharas along with the valuation report of the properties listed by the company for sale within one week.

Meanwhile, senior advocate Rajeev Dhavan, appearing for group, had also submitted a fresh proposal stating that they were ready to deposit Rs 3,000 crore cash in five days and another Rs 2,000 crore in the next 30 days thereafter. Besides, the group could furnish a bank guarantee for the rest of Rs 5,000 crore in 60 days after selling its equities in hotels, one situated in London and two in New York.

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  1. S
    Suresh Yadav
    Jun 4, 2014 at 1:00 pm
    SC should not be that tough for subrata roy.
    Reply
  2. A
    Anil Kumar
    Jun 5, 2014 at 11:48 am
    I agree sc is at the top and it can never take wrong judgement but what about the people who believe that sahara is right and some game has been pla behind them to earn huge money from them. God knows who is right and who is wrong. I personally support subrata sirji
    Reply
  3. I
    imran khan
    Jun 4, 2014 at 4:12 pm
    Pathetic if subrata roy shahara ready to pay then why sc is not giving bail at least let him out of jail once
    Reply
  4. P
    Purush
    Jun 4, 2014 at 11:46 am
    Good to see the courts acting tough with offenders like Subroto Roy. Such operators have vitiated the entire atmosphere and have scant respect for law.
    Reply
  5. R
    Rakhi
    Jun 4, 2014 at 12:58 pm
    We support saharasri....and pray that he will be released soon...
    Reply
  6. R
    Rishabh
    Jun 4, 2014 at 3:13 pm
    Its a symbol that even the court also thinks that Sahara is right.They have been forcefully involved in this fraud case.That's why after soo long court has allowed sahara to sell their property in order to imprison the saharasri ji. But still what I think is that sc must release saharasri ji also as he is the most reputed and innocent person I have ever seen.
    Reply
  7. A
    Akshar Patel
    Jun 4, 2014 at 3:49 pm
    he is innocent and he is giving life to everyone in india
    Reply
  8. R
    Rohan
    Jun 5, 2014 at 11:46 am
    Whats going on? I am quite confused. This issue is too old and uptill yet nothing has been done. As per I have judged subrata roy is innocent. He has many supporters then why he is still in jail? Whats the mystery behind it? Its there any fault of the minters or there is any politics behind it?
    Reply
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