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SEBI Court Rejects Subrata Roy’s Application For Exemption As He Fails To Appear Again

Nitish Kashyap
18 May 2017 3:39 PM GMT
SEBI Court Rejects Subrata Roy’s Application For Exemption As He Fails To Appear Again
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Sahara Group Founder Subrata Roy failed to appear before the Special SEBI Court in Mumbai on Thursday citing health reasons.

Roy’s advocate, Ashok Saraogi submitted a medical certificate stating that Roy is suffering from gastroenteritis.

An application seeking Roy’s exemption from appearing personally for the hearing was also filed. Judge MG Deshpande rejected the application and directed Roy’s doctor to be present in court on June 7.

Sahara Real Estate Corporation and Sahara Housing Investment Corporation also filed an application for discharge in the present case before SEBI Court.

The accused, including Roy are seeking discharge on the ground of double jeopardy as the company and its directors have already been prosecuted and fined for the same offences at a Lucknow Court.

Sarogi submitted that a company or a person cannot be prosecuted twice for the same offence thus the case is infructuous.

On April 1, 2017, a non-bailable warrant was issued against Roy by Special SEBI 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.

The NBW was cancelled on April 21 after he remained present in the court and submitted an undertaking along with two other directors of Sahara Group (accused), stating that they would remain present on the relevant dates for the case.

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.

So far 11,000 cr has been deposited. 24,000 cr is still left and the Supreme Court has made it clear that this money has to be paid back to the investors.

Supreme Court had ordered the auction of Amby Valley, and then fixed the reserve price at Rs.37,392 crore.

In April, the apex court had accepted two cheques submitted by Roy worth Rs.2000 crores. Roy had committed to pay Rs.3000 crore more by October end.

A bench headed by Justice Dipak Misra had said that Roy would be sent to Jail if these cheques were not realised till June 19.

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