Sahara says, can’t pay Rs10,000 crore for Roy’s release
Moneylife Digital Team 03 April 2014

Sahara chief Subrata Roy to remain in jail as the Supreme Court adjourned hearing to 9th April. Sahara had proposed to Rs2,500 crore immediately and rest Rs2,500 crore in cash within three weeks after release of Roy and two directors

Subrata Roy-led Sahara group on Thursday informed the Supreme Court that it cannot immediately pay Rs10,000 crore for securing bail for its chief and two other directors. The apex court, however, asked Sahara to file its proposal before the Registry and then it will consider it. The SC, later adjourned the hearing till 9th April. This means, the Sahara chief would remain behind bars till that time.

 

Sahara group told a Bench of Justices KS Radhakrishnan and JS Khehar that it can pay Rs2,500 crore immediately and rest Rs2,500 crore in cash within three weeks after release of Roy and two directors, Ravi Shankar Dubey and Ashok Roy Choudhary.

 

The apex court had earlier imposed a condition that Roy will be freed on bail only if he pays Rs10,000 crore out of which Rs5,000 crore has to be in bank guarantee and rest Rs5,000 crore in cash.

 

Roy and the other two directors of the Group have been in judicial custody since 4th March for not abiding by the apex court’s order for depositing Rs20,000 crore of investors’ money with Securities and Exchange Board of India (SEBI).

 

65-year-old Roy had earlier submitted that the apex court’s order for detaining him for not paying Rs20,000 crore of investors’ money with SEBI was illegal and unconstitutional and sought quashing of the order.

 

A group of senior advocates headed by Ram Jethmalani, who had appeared for Roy and the company, had told the bench that its approach was “biased” and it should not hear the petition challenging the order.

 

Counsel had said it was unconstitutional to send a man behind bars for not paying the money and also questioned the order putting a condition of paying Rs10,000 crore for getting interim bail.

 

SEBI, however, had opposed the stand taken by Roy’s counsel, saying that his petition was not maintainable.

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