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SEBI Court Cancels NBW Against Subrata Roy

Nitish Kashyap
21 April 2017 4:49 PM GMT
SEBI Court Cancels NBW Against Subrata Roy
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A special SEBI court on Friday cancelled a non-bailable warrant issued against Sahara Group founder Subrata Roy after he remained present in the court and submitted an undertaking along with two other directors of Sahara Group, stating that they would remain present on the relevant dates for the case.

On April 1, 2017, a non-bailable warrant was issued against Roy by Special Judge Shayeda Razvi as he failed to appear earlier.

This order was challenged before the Bombay High Court, which in an order dated April 11 disposed of the applications, directing Roy to remain present before the SEBI court on or before May 4 for recalling the NBW and furnishing a bail bond. Roy and two directors of Sahara Group were also directed to submit an undertaking.

Friday’s proceedings were in compliance with the high court orders.

In August 2012, the Supreme Court had ordered Sahara Group to deposit Rs. 25,000 crore with the Securities and Exchange Board of India (SEBI) as it was found that Sahara Real Estate and Sahara Housing, which are a part of Roy’s Sahara Group, owe this money to more than three crore investors.

On Monday, the Supreme Court had ordered the auction of Amby Valley, which is valued at Rs. 34,000 crore, after Roy failed to deposit the money meant to be returned to investors. So far, Rs.11,000 crore has been deposited.

SEBI has alleged that Sahara Group violated provisions of the SEBI Act, which can lead to imprisonment of upto 10 years.

Arguments on framing of charges will begin on May 18.

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