Supreme Court today expressed concern over how Sahara Group would raise money to secure its chief Subrata Roy’s release, as the group sought extension of facilities inside Tihar jail premises by four to six weeks to enable him negotiate deals with prospective buyers.

The apex court expressed concern about the payment of money to be made by Roy to secure his release from jail.

“You are struggling to pay Rs 10,000 crore. How will you pay Rs 30,000 crore after coming out,” the bench asked.

A bench headed by Justice T S Thakur also asked the counsel for Sahara group to file an appropriate application in regard to its request.

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Earlier in a new turn of events in the case, RBI had moved the apex court seeking to implead itself as a party in the company’s tussle with SEBI and sought to stop one of its firms from disposing off assets for securing Roy’s release.

In an application, Reserve Bank of India (RBI) urged the apex court to restrain Sahara India Financial Corporation Ltd (SIFCL) from utilising any of its assets, including securities, for paying dues to SEBI on the ground that SIFCL is Residuary Non-Banking Financial Firm and fell under its (RBI) regulatory control.

Prior to this, the Sahara group had informed the apex court that the proposed transactions for a loan of around US dollar 1,050 million from abroad for raising Rs 10,000 crore to ensure Roy’s release from jail had failed.

The apex court, on January 9, had allowed Sahara Group to go ahead with its proposed transactions with some conditions including the approval of RBI for the transfer to India of the funds raised in the US to meet the requirement set for release of Roy, who is lodged in Tihar jail since March 4 last year for non-refund of over Rs 20,000 crore with interest to depositors.

India’s jailed Sahara group boss Subrata Roy seeks more time to raise funds for bail
(Reuters) The jailed boss of Indian conglomerate Sahara has asked a court for more time to work out a deal to raise funds against properties and get bail, three lawyers involved in the case said, after talks with a U.S.-based firm collapsed this month.

Subrata Roy on Tuesday asked the Supreme Court to let him use a high-tech office space inside New Delhi’s Tihar jail complex for six more weeks, to talk to potential investors and raise $1.6 billion in bail, the lawyers told Reuters.

The court did not set a date to consider the request, said the lawyers, who declined to be identified ahead of a ruling.

“A request has been made to allow the use of office premises for six more weeks, in view of the ongoing negotiations,” said one of the lawyers. “The court order on this should come soon, probably later this week.”

A spokesman for Sahara declined to comment on the extension request.

Roy, who has been held in the jail since March on contempt charges after failing to obey a court order to repay investors in a bond scheme later ruled to be illegal, has court approval to use the office space until Feb. 20.

The court had given him approval to finalise a deal with U.S.-based Mirach Capital Group, which involved a loan by Mirach secured against some of Sahara’s properties, including New York’s Plaza hotel, but talks fell through.

Sahara called off the talks after finding that a bank letter underpinning the proposed deal was forged, following evidence reported by Reuters that Saransh Sharma, who was leading the deal through Mirach, did not have the funds needed.

Roy’s lawyers told the court Sahara was in talks with three potential investors to raise funds against its properties and so the tycoon needed to use the office in order to hold video conferences, make use of computers and receive visitors.

Since Roy’s imprisonment, Sahara, which has interests in real estate, media and hotels, part-owns a Formula 1 team and used to sponsor the Indian cricket team, has been trying to raise cash against its properties in India and overseas.

The bail of $1.6 billion, the largest ever set in India, reflects the scale of the illegal bond scheme. The court has said investors need to be repaid as much as $7 billion, including accrued interest.