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Supreme Court contemplates to relax Rs 10000 crore-payment condition on Sahara chief Subrata Roy

Rituparna Duttaa
16 April 2014 2:27 PM GMT
Supreme Court contemplates to relax Rs 10000 crore-payment condition on Sahara chief Subrata Roy
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A Supreme Court Bench of Justices K S Radhakrishnan and J S Khehar said they were pondering to relax the condition of paying rupees 10000 crore to enable Sahara Chief Subrata Roy to come out of jail. Sahara group however alleged that the detention order was pre-written and it was on March 4 that the judges simply pronounced it.

Sahara counsel Rajiv Dhavan challenged the validity of the detention order and argued that the way in which the order was pronounced, it seemed as if the order was already prepared.

The contention of Dhavan was that both the Court and the SEBI had been totally unfair with the group and its people. He further stated that while sending Roy and two other directors to jail, the Supreme Court rules were not followed. The Bench however stated that it gave a thought to modify certain conditions since the counsel for Sahara said that they were incapable to collect money. The Court stated that the decision was not final though. It has also asked Sahara that if it desired to have its bank accounts defreezed, it should move a formal application.

Live Law reported on March 13, 2014, that Sahara group Chief Subrata Roy would stay in Tihar jail for some more time as the Supreme Court declined his plea for release on a personal bond with an assurance that he will not leave the country. A Bench comprised of Justice K.S. Radhakrishnan and Justice J.S. Khehar reiterated their earlier order as they asked senior counsel Ram Jethmalani if there was any proposal by the Sahara chief to deposit the balance of rupees 19,000 crore to SEBI for resumption of investors’ money. When Mr. Jethmalani told the Court that Mr. Roy was prepared to pay an amount of rupees 2,500 crore as part payment of the outstanding amount, the Court refused to accept the offer.

Last week, the Apex Court refused a request made by the group to release Roy from jail and keep him in house arrest or office arrest to help in collection of money. The Bench also cleared that the trio was only in judicial custody in Tihar jail and not under arrest. Stating that it was now contemplating for international buyers as well to sell its properties abroad in order to raise the money as refund of investors, the Sahara group sought their release from the Tihar jail. Talking about the condition of the Tihar jail, Sahara group's counsel Ram Jethmalani told the court that due to overcrowding of prisoners a potential buyer would never want to visit such a place. The Court however, replied that it would examine the request in due course.

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