Saturday, 20 June 2015

No respite for Subrata Roy as Supreme Court sets terms for his release

No respite has been granted for the Sahara Group Chief, Subrata Roy. The 65 year old Roy is in Tihar jail since 4th March 2014. The Supreme Court on 19th June said that, Subrata Roy’s release from the jail is subject to furnishing of total Rs 10,000 crore; Rs 5,000 crore in cash and Rs 5,000 crore in bank guarantee.
The apex court said that Rs 36,000 crore has to be paid by Sahara group to SEBI in 18 months in nine installments from the date of release of Roy. Rs 3,000 crore should be paid in the first installment, and in case of two defaults, SEBI can encash the bank guarantee to be furnished by Sahara.
If there is a failure to comply with the directions of the court in making payments, Roy will have to surrender himself again to the custody.
The court directed Roy and two other jailed directors of Sahara to deposit their passports on release and would not be allowed to travel abroad and must mark his presence at Tilak Marg police station in central Delhi once every fortnight.
According to Kapil Sibal, who is appearing for Roy as senior advocate, Roy will have to remain in jail as there is a difficulty in furnishing the bank guarantee of Rs 5,000 crore as one of the financial institutions has backed out.
Roy and two directors were taken into custody on March 4 last year after the SC found two group companies - Sahara Real Estate and Sahara Housing - repeatedly failing to deposit over Rs 22,000 crore with 15% interest per annum to Sebi for return to investors. The group had deposited Rs 5,120 crore in December 2012. On March 26 last year, the court had granted interim bail to Roy and the two directors but with the warning that they would be released only on depositing Rs 5,000 crore in cash and Rs 5,000 crore in bank guarantee. 


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