SC restrains Subrata Roy from leaving India, says Sahara cant sell any property

New Delhi | Updated: Nov 22 2013, 15:54pm hrs
In a hard-hitting order, the Supreme Court on Thursday barred Sahara Group chief Subrata Roy and other directors from leaving the country and also restrained the group from selling any of its movable or immovable properties till further orders.

The development comes in the wake of market regulator Sebi telling a bench headed by justices KS Radhakrishnan and JS Khehar that the Sahara Group had overvalued its properties and failed to hand over all original title deeds of assets worth R20,000 crore as per its October 28 directions.

The court said that Sahara had failed to hand over acceptable title deeds of properties worth R20,000 crore to the Sebi for refunding the amount raised through illegally floated debentures from its 3.3 crore investors.

We are satisfied that our order dated October 28 for handing over title deeds of R20,000 crore unencumbered properties has not been complied with. Hence, we direct Sahara not to part with movable and immovable properties till our further orders. All contemnors shall not leave the country..., justice Radhakrishnan said.

The court further clarified that all the Sahara companies, including partnership firms, are restrained from selling properties. It observed that they will get a further hearing only after complying with the court order in letter and spirit within two days. First deposit and then we will hear you, it said, while posting the matter for further hearing on December 11.

It further prevented Roy, along with other directors of the group, Vandana Bhargava, Ravi Shankar Dubey and Ashok Roy Choudhary from leaving the country.