Reprieve for Sahara chief Subrata Roy, Mumbai court cancels non-bailable warrant
Sahara chief Subrata Roy and three other directors of the company were issued a warrant for failing to appear before the court in a 2012 casebusiness Updated: Apr 25, 2017 22:50 IST
A special SEBI court in Mumbai on Friday cancelled a non-bailable warrant (NBW) issued against Sahara chief Subrata Roy on March 31.
A special court issued a warrant against Roy and three other directors, after Roy failed to appear before the court. Roy challenged the warrant before the Bombay high court.
The high court had directed Roy to appear before the court on or before May 3.
On appearance, special judge Shayeda Razvi recalled the warrant. The court recalled the warrant on condition they give an undertaking that they will attend every hearing.
The case dates back to 2012. It is alleged the companies issued optionally fully-convertable debentures to public at large in 2009 under the guide of private placement, which is in violation of SEBI act.
The officer said according to the Company Act, if a company has to collect deposit from more than 50 people, you have to take money through recognised stock exchange without listing shares.
“They had collected around Rs24,000 crore in the name of Sahara real estate corporation and Sahara housing investment corporation. This amounts to criminal offence,” the officer alleged.
Roy and other directors of the companies are alleged to have violated Section 24 of SEBI Act, which if proved, a person can face imprisonment up to 10 years or fine of Rs25 crore.
The complaint was filed in 2012 for the alleged violation in 2009.