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

Moneylife Digital Team 17 February 2015

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.

Comments

User

Ralph Rau

10 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

10 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.