Monday, Nov 24, 2014

Sahara executive proposes Rs 3,000-cr ‘contribution scheme’

SUBRATAROYM Roy, who was sent to jail on March 4 this year was asked by the court to pay Rs 10,000 crore to get bail.
Press Trust of India | New Delhi | Posted: August 14, 2014 5:58 pm

As Sahara India chief Subrata Roy continues negotiations with potential investors to raise funds to secure his release from jail, a senior group executive has proposed a ‘contribution scheme’ to raise Rs 2,500-3,000 crore from two lakh members of its parabanking division.

The scheme involves collection of Rs 1.25 lakh-1.50 lakh each from these two lakh persons, as per a letter sent by D K Srivastava, an Executive Director in the group.

When contacted, a Sahara India spokesperson said, “It is an individual initiative and not a management decision of the group.”

In his two-page letter, dated August 13, Srivastava said that collection of money through this “contribution scheme” would help raise funds to secure Roy’s release without the need for selling hotels or other properties.

The letter further said that those contributing funds to this scheme can invest this money either in Q-Centre retail business of the group after 150 days, or get back the funds with 14 per cent interest in 9-12 months.

The money should be deposited within seven days, Srivastava said in his letter, while adding that the group’s parabanking division had not done enough for Roy, who has already secured Rs 5,000 crore of bank guarantees and would soon be out of jail along with two directors after collecting further Rs 2,000 crore.

Roy and two directors of his group were allowed by the Supreme Court on August 1 to use a conference room in Tihar jail complex for 10 days, beginning August 5 to hold negotiations with potential buyers for the group’s three overseas hotels and other properties.

The Supreme Court today granted 15 more days to Roy to wind up negotiations to sell the properties. The group told the apex court that negotiations with foreign buyers are at final stage.

Roy, who was sent to jail on March 4 this year in a long-running case related to non-refund of over Rs 20,000 crore to depositors, was asked by the court to pay Rs 10,000 crore to get bail, including Rs 5,000 crore in cash and rest of the amount in bank guarantee.

Sahara has so far raised Rs 3,117 crore and the same has been deposited with Sebi. Besides, the group had earlier deposited Rs 5,120 crore to Sebi and claimed to have already repaid bulk of the money collected from investors and its outstanding was much below the money deposited to Sebi.

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