Court orders Sahara to pay 100 billion rupees to release chairman Roy on bail

NEW DELHI Wed Mar 26, 2014 4:40pm IST

The Sahara group chairman Subrata Roy (C) arrives at the Supreme Court in New Delhi March 4, 2014. REUTERS/Anindito Mukherjee

The Sahara group chairman Subrata Roy (C) arrives at the Supreme Court in New Delhi March 4, 2014.

Credit: Reuters/Anindito Mukherjee

Related Topics

NEW DELHI (Reuters) - The Supreme Court has agreed to release the head of the Sahara conglomerate from custody, but only after the group deposits 100 billion rupees in cash and bank guarantees.

Sahara Chairman Subrata Roy was arrested on February 28 and has been held in a Delhi jail since March 4 after failing to appear at a contempt hearing in a long-running legal battle between the group and the securities regulator over the refund of billions of dollars to investors in outlawed bonds.

In its ruling on Wednesday, the Supreme Court ordered unlisted Sahara to deposit 50 billion rupees in cash with the securities regulator as well as provide bank guarantees for another 50 billion rupees.

Sahara officials did not immediately comment on the court's ruling.

Sahara's lawyers asked the court to give the group access to some of its bank accounts that have been seized by authorities and expect a decision at a hearing on Thursday, Keshav Mohan, one of the lawyers representing Sahara, told Reuters. He declined to comment further.

The core business of Sahara, which owns New York's Plaza Hotel and London's Grosvenor House and is the former main sponsor of India's national cricket team, includes selling financial products, largely to small investors in towns and rural areas.

Two such products were ruled to be illegal and the Supreme Court ordered Sahara in 2012 to repay billions of dollars it had raised in the schemes.

While Sahara says it has repaid most investors and its total liability was less than the 51.2 billion rupees it has deposited with the securities regulator, the regulator and the court disputed that.

(To read - Investors fear for their deposits after Sahara chief's arrest, click here)

The court had asked Sahara to come up with a concrete and acceptable proposal to repay the money, while ordering its chief to be held in jail. Roy has not been charged with any crime.

It had previously rejected Sahara's proposal to give bank guarantees of 225 billion rupees within three to six months, as well as a subsequent proposal to pay a total of 174 billion rupees in six installments through July 2015.

(Reporting by Suchitra Mohanty; Writing by Devidutta Tripathy; Editing by Tony Munroe and Matt Driskill)

FILED UNDER:
We welcome comments that advance the story through relevant opinion, anecdotes, links and data. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. For more information on our comment policy, see http://blogs.reuters.com/fulldisclosure/2010/09/27/toward-a-more-thoughtful-conversation-on-stories/
Comments (1)
Komalpreet wrote:
It seems like they kidnapped Subrata Roy and now asking 10k crore to release him. They raised the money for bail as they seen Subrata Roy’s wealth status.

Mar 29, 2014 11:57am IST  --  Report as abuse
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.

  • Most Popular
  • Most Shared

Economic Pulse

REUTERS SHOWCASE

Deregulation Impact

Deregulation Impact

Private fuel retailers to dip toe, not dive back, into India  Full Article 

Gold Import

Gold Import

RBI will not change gold import rules - sources  Full Article 

Idea Results

Idea Results

Idea Cellular Q2 profit up 69 percent  Full Article 

An RBI First

An RBI First

RBI releases minutes of financial stability council's Aug meet  Full Article 

Global Shares

Global Shares

Japanese stocks lead shares worldwide, IBM weighs on Dow  Full Article 

IBM Chip Unit

IBM Chip Unit

IBM to pay Globalfoundries to take chip unit  Full Article 

IBM Earnings

IBM Earnings

IBM ditches 2015 operating EPS target, shares slump 7 pct  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device.  Full Coverage