Companies & Sectors
Supreme Court expresses concern over Rs10,000 crore payment for Roy’s release

While asking the counsel for Sahara to file appropriate application for extension of facilities for Subrata Roy in Tihar jail, the Supreme Court expressed concern about the Rs10,000 crore payment for securing Roy’s release

 

The Supreme Court on Tuesday expressed concern over how Sahara Group would raise money to secure its chief Subrata Roy's release even 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 Rs10,000 crore. How will you pay Rs30,000 crore after coming out," the bench asked.
 
A bench headed by Justice TS Thakur also asked the counsel for Sahara group to file an appropriate application in regard to its request.
 
Earlier in a new turn of events in the case, the Reserve Bank of India (RBI) had moved the Supreme Court seeking to implead itself as a party in the company's tussle with Securities and Exchange Board of India (SEBI). RBI had sought to stop one of its Sahara group companies from disposing off assets for securing Roy's release.
 
In an application, the central bank had 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 company and fell under its (RBI) regulatory control.
 
Prior to this, the Sahara group had informed the Supreme Court that the proposed transactions for a loan of around $1,050 million from abroad for raising Rs10,000 crore to ensure Roy's release from jail had failed.
 
Earlier on 9th January, the Court had allowed Sahara Group to go ahead with its proposed transactions with some conditions. The conditions, included approval of RBI for the transfer of funds raised in the US to India to meet the requirement set for release of Roy. The Sahara group chief is lodged in Tihar jail since 4 March 2014 for non-refund of over Rs20,000 crore with interest to depositors.
 

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COMMENTS

Ralph Rau

2 years ago

This whole business model of Sahara looks very strange to me.

Sahara has clearly not been able to establish that there are legitimate depositors.

This seems to be a money laundering scheme to convert black money of a few individuals.

There may be a few actual depositors who serve to hide the real operation ?

For his sheer arrogance and repeated contempt of the courts should he be shown any mercy ?

Dayananda Kamath k

2 years ago

Is supreme court doing penance for its wrong decision of asking such a huge amount as bail money. How can they provide all these facilities that too to sell property of its groupe companies for his release. is it not supreme court abetting duping other sakeholders in the company whose property is being sold to provide for bail money for release of sahra are they not liable for breach of trust. legal luminaries should enlighten the public.

SEBI mulls new group to check manipulation in penny stocks

To check market manipulation through penny stocks, the market regulator wants stock exchanges to create a new group T+ for scrips that are found to be prone to market manipulation

 

Market regulator Securities and Exchange Board of India (SEBI) would soon ask stock exchanges to create a new group for shares that are found to be prone to market manipulation through 'penny stocks', says reports.
 
The new group may be called 'T+' and would include shares that remain susceptible to manipulative activities despite having been put in the 'T' group. In T group the trading is restricted to delivery-based trades within a small price band of up to 5% and intra-day trades are not allowed.
 
The stocks in the new group could be subjected to even shorter price bands of up to 2%, while other restrictions could be put in place to ensure that only genuine trades are permitted on those counters, a senior official has been quoted as saying in reports.
 
It has been noticed that operators tend to push up the prices of T-group stocks ahead of their exit from such restricted trading categories, while the shares are dumped after luring gullible retail investors to these counters.
 
SEBI has already consulted stock exchanges and other stakeholders on this issue and the necessary framework for the new group would be put in place soon.
 
The stock exchanges classify various stocks traded on their platforms into several groups such as A, B, T and Z on certain qualitative and quantitative parameters.
 
The A-Group stocks are generally large-caps with strong business fundamentals, high public float of shares and better compliance record on corporate governance and regulatory fronts. The B-Group stocks mostly include mid-caps and some small-caps.
 
The T- Group includes stocks, which are settled on a trade-to-trade basis as a surveillance measure. These stocks usually attract a price band of five per cent, which is the maximum permissible limit within which the share price can move.
 
Under the trade-for-trade or T group segment, no speculative trading is allowed and delivery of shares and payment of consideration amount are mandatory.
 
The Z group includes companies, which have failed to comply with its listing requirements and/or have failed to resolve investor complaints.
 

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Economy & Nation Exclusive
Billionaire Subrata Roy strangely can’t raise money to get out of jail
Does Sahara really own the assets it claims to own? If so, why the struggle to sell some of them?
 
The government has been quick to send out notices to the Aam Admi Party (AAP) and Congress on their alleged benami election funding. But consider the silence of all tax agencies on the astonishing drama being played out before the Supreme Court of India in the Sahara Pariwar (group) case, even as group chairman Subrata Roy remains in jail for almost a year. 
 
Why is a man, who had an endless supply of money to acquire marquee properties around the world, sponsor the Indian cricket team for years, gift lavish bungalows to cricketers, claim ownership of several sports teams and stadia and throw lavish parties, not able to muster Rs10,000 crore of legitimate funding to get himself out of jail? And what does it say about a country which makes a big deal about bringing black money back from Swiss bank accounts when it has no clear idea of the source of funds of the home-grown but shadowy Sahara business empire? Why is the Sahara group struggling to sell high-profile properties, despite having unprecedented facilities (air-conditioned conference room and video-telecommunication facilities) provided in Tihar jail? 
 
The latest twist in the jail-bail drama around Subrata Roy is that the proposed $2.05 billion buyout of Sahara’s hotels in London and New York by Mirach Capital of the US has fallen through. Sahara has alleged that a letter of guarantee from Bank of America for over $1.05 billion provided by Mirach turned out to be forged. Mirach denies the forgery and claims it is still ready for an outright purchase of Sahara’s three hotel properties.
 

For those who have forgotten, a path-breaking judgement of the Supreme Court, in August 2012, asked two realty companies of the Sahara group to refund Rs24,000 crore collected from investors through an unregulated, debenture-like instrument. But, after paying up just Rs5,120 crore, Sahara resorted to drama and hurled allegations against the regulator through an ill-considered advertisement campaign. It has not been able to prove the existence of even a fraction of the large investor base that it had claimed. The group’s antics angered the apex court; Subrata Roy was held in contempt and sent to jail until the Sahara group deposited Rs10,000 crore, in addition to the money already deposited with the Securities & Exchange Board of India (SEBI). 
 
At the February hearing, the apex court was told by the amicus curiae that there was more to the failed deal than meets the eye. More shocking were reports that a letter, allegedly issued by Bank of America to Mirach, the white-knight-to-be, was forged. More interestingly, Reuters reports SEBI’s apprehension that several of the assets that Sahara claims to own (as proof of its ability to repay investors) may not entirely belong to the group. This, if true, opens a whole new can of worms and suggests benami ownership which, again, our investigation agencies have not got wind of, for decades. SEBI also seems to have discovered the ownership issues only when it seemed likely that Sahara’s assets would be sold to raise the money that has be refunded to investors as per court orders.

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COMMENTS

Dayananda Kamath k

2 years ago

My simple question is why shara has to pay more than 60% of the amount claimed to have been collected by them for bail while Jayalaita and sharda scam detains can get bail for paltry amounts. Justice should be done but it also must appear to have been done. And how far is it right to sell the firms property to the detriment of the interest of stake holders of these properties for providing bail money to sahra, is it not amout to breach of trust. does supreme court wants to be a party to this offence by facilitating the sale.

Mahesh S Bhatt

2 years ago

Nani Palkhiwala's beautiful comments reminds me his quote

"Man's propensity to Earn More than he deserves has always led him to untold miseries."

See Sahara/Shivsena Bros/Ambani's/Birla/Goenkas/Hiranandani/Raheja all have fought/broken empires.

Paradox is their valuations have gone up after the breakage.

There is some

Mahesh

Mahesh S Bhatt

2 years ago

We shall never know as our Politicians are behind him so are most of our ruling lot.
Challenge is too much of Laws have brought total DISORDER instead of Order in House/Nation/International levels too.

Remove taxes we pay 80 plus types of direct /indirect taxes,now we shall have Cleanliness tax from Center too which Modi is proposing.
Government after Government makes taxes poor compliances high fines more more corruption.
Land/Air/Water/Power/Roads/Educatuion/Healthcare/TV/Phone/Food /Services/car/Excise/Income/Customs/Salt/Entertainment/Corporate/Property/Stamp Duty everythings is tax tax tax.

So enjoy Courts have fun goons are unmanagable.Sahara is biggest NBFC with assets claim of few lacs of crore last which I read at Sahara Studio Mumbai office in 2000 was 1.75 lac crores.

We have buildings & buildings lying vacant since 6 years in Dadar/Bombay Central claiming investor money.

NPA 2.4lacs crore Nov 14.Courts shall be more & more busy in times to come.

Celebrate Chill Watch the Economic Drama in India & Global.

Advice weak hearted shouldnot be in the show.

Saare Jahan se Accha Hindutan hamara Hum 147 /181 rank achieve kiye hai abhi improvement bahut baki hai.

Mahesh

Prabhakar V Hegde

2 years ago

Messy messy mess. A detailed invistigation into entire 'Saha' enterprise is needed to understand the whole truth, till then it is only tip of the ice burg!

Vaibhav Dhoka

2 years ago

Sahara is case where all regulators are fooled/hand in glove or party to SCAM.

Kiran Aggarwal

2 years ago

Was there no Fixed Asset checking done under Auditing process??

Sahara story is best case study of
institutional collapse at many levels.

--------------

Richie Rich who is not rich is the person named Mr. Roy

Sreejil Kalathil

2 years ago

It seems they will have to fabricate new plans to bail out subrata roy. Well truth some times takes time to reveal itself. Sahara will also have to wait I guess.

Leslie Menezes

2 years ago

A close unofficial watch on many of these high profile jailbirds may be illuminating as to the actual life enjoyed by them "in jail" and "on record in jail". Why give 10,000 crores when there are the jail staff, investigating staff, and the hirarchy who can be persuaded and some of this money lavisged on them for "better returns".

Aditya Singhal

2 years ago

Couldnt be more appropriate and correct. Who will take the veil off? May be AAP!

Amit Mittal

2 years ago

It is everybody knowledge that all these groups Sahara, kuber, Saradha etc. are/were shady businesses. It has been long that these were enjoying political involvement and patronage. they cared least about the law and ethics. All of these scamsters should meet with an outcome that serve as deterrent for future scamsters.

Last couple of comments seem like the handiwork of social marketing teams hired by sahara.

SuchindranathAiyerS

2 years ago

Apart from an air conditioned conference room and video conference facilities, what else keeps Subrata Roy in jail? Did India's rulers put in that 19 hole Golf Course and Five Star annexe in anticipation of their own incarceration, as well?

Sarika Khanna

2 years ago

How is this possible, if they were not owning the assets, how would they claim to sell it. This is an entirely new story that has come up. I dont think it is possible.

Prachi Sharma

2 years ago

its funny how you are actually agreeing that Mirach had forged documents and then blaming Sahara for calling off the deal. Had they gone ahead with it, you would have probably claimed that they themselves forged the documents?

Aakriti Kaul

2 years ago

Sebi had claimed a lot of things earlier but they havent been able to prove any. Even after several attempts, they havent been able to find the unpaid inestors, they found just 4600 till now as opposed to the crores of investors they had claimed. What about that? Even the SC has asked them to find the investors at the earliest.

Sonali Gupta

2 years ago

This is so strange, Sahara could have easily gone ahead with the Mirach deal but it chose not to after learning of the forged document. Still it is being blamed. Even in these trying times, they did not compromise on their principles. What more do people expect them to do?

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