In a major setback for Sahara Group chief Subrata Roy over the ongoing cases against him, the Supreme Court has, today, ruled out the plea for extension of time to pay Rs 600 crore by February 6.
In a major setback for Sahara Group chief Subrata Roy over the ongoing cases against him, the Supreme Court has, today, ruled out the plea for extension of time to pay Rs 600 crore by February 6. Over Subrata Roy’s request for the extension of time, the apex court had directed that the Sahara India chief might be sent back to jail if the required amount of money is not being paid to the Securities and Exchange Board of India (SEBI).
Stating that too much of indulgence has already been given to the Sahara chief, more than any other litigant, SC rejected the plea made by Subrata Roy, who cited demonetisation and economic slowdown as the reason. However, the apex court has granted liberty to Subrata Roy to transfer Rs 285 crore deposited in London bank to SEBI.
The bench, initially, had asked Roy to deposit Rs 1,000 crore with market regulator SEBI in two months or it will appoint a receiver, but later reduced the money to be deposited to Rs 600 crore till February 6, 2017.
Market regulator Sebi had earlier said that Sahara Group was liable to pay Rs 37,000 crore with interest, of which the principal amount payable was Rs 24,000 crore.
Sahara has already paid Rs 10,918 crore out of Rs 24,029 crore raised from investors, Sebi had said.
The Sahara chief was sent to jail on May 4, 2014, for his failure to comply with 2012 order directing him to return investor’s Rs. 17,600 crores with 15 percent interest that his two companies Sahara India Real Estate Corp Ltd and Sahara Housing Finance Corp Ltd had raised through optionally fully convertible debentures (OFCD) in 2007 and 2008. Roy has been directly charged in the case pertaining to non-refund of nearly Rs 20,000 crores to investor.
(With inputs from agencies)