The Sahara Group on Tuesday proposed before the Supreme Court that it would deposit over Rs 20,000 crore with market regulator SEBI, which could then refund the amount to retail investors who had put money in the company’s financial schemes declared illegal by the top court in 2012.
The proposal will be taken up for consideration on Wednesday.
Sahara said it would pay the amount in five instalments by March 15, 2015. The first tranche of Rs 2,500 crore would be deposited in three working days, three instalments of Rs 3,500 crore each by the end of June, September and December, and the final one of Rs 7,000 crore by March 15, 2015.
The group has said in its proposal that it is willing to give an irrevocable bank guarantee at any time for any unpaid amount, and sought the court’s permission to allow the group companies to operate its bank accounts, which have been frozen.
The group had earlier made a similar proposal, offering to pay Rs 2,500 crore cash within three days and Rs 14,900 crore in five instalments by the end of July, 2015. At that time it had contended that it owed only Rs 15,400 crore to SEBI. SC had rejected that proposal on March 7.
“Your lordships may direct SEBI to accept the remaining documents which comprises of original vouchers, original receipts and all other relevant documents,” Sahara’s proposal stated, adding SEBI could undertake examination and verification of the documents.
Sahara lawyers also appealed to the SC to release Subrata Roy and the other two directors on bail, terming the incarceration “illegal” and challenging it on the ground it violated their fundamental rights.
The arguments in the case will resume on Wednesday.
Roy and the two directors were sent to jail on March 4 after he failed to convince judges that he was serious about repaying investors.