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SC turns down Sahara plan, Roy to remain in jail

Calling it an insult after making it assemble a special bench, the Supreme Court on Friday ticked off the Sahara group for not coming out with a proper proposal for refunding Rs 20,000 crore of investors money.

india Updated: Mar 08, 2014 02:02 IST
HT Correspondent
HT Correspondent
Hindustan Times
Sahara,Sebi,Supreme Court

The Supreme Court on Friday rejected Sahara group’s proposal of refunding Rs 17,400 crore to investors in three-monthly installments, calling the proposal an insult to the SC special bench.

“You can’t have a bench assemble for a person not willing to pay. You should bring an honourable proposal,” the bench said, turning down Sahara’s plea to pay the first installment of Rs 2,500 crore up front.

Read: Undone by fine print: How Sahara landed in trouble

With the SC not finding the proposal ‘attractive’, Sahara chief Subrata Roy will remain in Tihar jail till March 11, the next date of hearing. The SC, however, allowed Roy’s lawyers and financial consultants to meet him in jail for two hours every day. Sahara’s plea to send Roy in police custody will be also heard on March 11.

The two-judge bench of justice KS Radhakrishnan and justice JS Kehar assembled to hear the case after an urgent appeal by Sahara’s counsel on Friday morning. Sahara sought time till July 31, 2015 to pay the entire sum and asked the court to vacate an order barring the group from operating its bank accounts.

Read:Subrata Roy brought to justice, to cool heels in Tihar for now

Market regulator SEBI opposed the proposal, arguing that Sahara had to pay Rs 34,000 crore and not just Rs 17,400 crore as claimed by Sahara.

In pictures:Subrata Roy gets inked

SEBI counsel Pratap Venugopal also said Sahara’s request for more time had already been rejected by the SC in February.

The bench took exception to Sahara counsel’s contention that raising more money wasn’t possible since Roy was behind bars. “Roy has been out for the last year-and-half and has been behind bars only for the last few days,” the bench shot back.

Read:Hard times for Subrata Roy in Tihar after 'picnic'

Related stories:
Sahara scandal - 4-year chain of events that lead to Subrata Roy's arrest
Hard to believe Sahara refunded money to investors'

First Published: Mar 07, 2014 11:08 IST