RBI needs to clear money Sahara raises abroad: SC - Hindustan Times
close_game
close_game

RBI needs to clear money Sahara raises abroad: SC

Hindustan Times | By, New Delhi
Dec 17, 2014 11:15 PM IST

The Supreme Court on Wednesday said the money arranged by Sahara Group overseas for the release of Subrata Roy would be transferred into local banks only after necessary clearances from the Reserve Bank of India.

The Supreme Court on Wednesday said the money arranged by Sahara Group overseas for the release of Subrata Roy would be transferred into local banks only after necessary clearances from the Reserve Bank of India.

HT Image
HT Image

A bench headed by Justice TS Thakur agreed with senior counsel Shekhar Naphade’s contention that special permission by a competent authority under Foreign Exchange Management Act (FEMA) would be required to transfer money from an escrow account of a foreign bank agent. The apex court told Sahara that it would give further orders on accepting the amount only after the legal impediment is settled.

Hindustan Times - your fastest source for breaking news! Read now.

“We do not consider it necessary to pass any direction on transfer of proposed account which exists of third party. Any direction can be passed on satisfaction of the Securities and Exchange Board of India and the amicus curiae,” the bench said.

Sahara also informed the bench that the escrow account has been shifted to Bank of America.

Further, the court clarified to Sahara that it was not ready to consider any plea to release Roy on bail to arrange money for his bail. The bench said that Rs 5,000 crore cash and another Rs 5,000 crore as bank guarantee was yet to be deposited, adding that there was no change in the circumstances.

The court was hearing the issue of Sahara seeking its nod to raise a “junior loan” of $650 million (Rs 4,135 crore) to overcome the liability with Bank of China, which had lent money to Sahara for purchasing the Dream Downtown and The Plaza in New York and Grosvenor House in London.

Unlock a world of Benefits with HT! From insightful newsletters to real-time news alerts and a personalized news feed – it's all here, just a click away!- Login Now!
Stay informed on Business News along with Gold Rates Today, India News and other related updates on Hindustan Times Website and APPs
SHARE THIS ARTICLE ON
Share this article
SHARE
Story Saved
Live Score
OPEN APP
Saved Articles
Following
My Reads
Sign out
New Delhi 0C
Thursday, March 28, 2024
Start 14 Days Free Trial Subscribe Now
Follow Us On