Business
SC gives Subrata Roy final chance to raise money for release
New Delhi, March 13
The Supreme Court on
Friday gave Sahara Group chief Subrata Roy a "final chance" to raise
Rs.10,000 crore -- Rs.5,000 crore in cash and Rs.5,000 crore in bank
guarantee -- to make part repayment of investors' money raised by the
company in 2008 and 2009 -- which is also a condition for his and two
other directors' release from custody.
Noting that earlier two
attempts by Sahara to raise the money got "aborted", a bench of Justice
T.S.Tkakur, Justice Anil R. Dave and Justice A.K. Sikri decided to give a
last chance as senior counsel Kapil Sibal told the court that they were
"hopeful" that their attempt to raise money would succeed and Sahara
would be able to comply with the court's order.
The court
recorded the statement of Sibal appearing for Roy that "earlier two
attempts have aborted and a final chance be given to discharge its
obligation".
Roy and two other directors Ravi Shankar Dubey and
Ashok Roy Choudhary are currently in custody since March 4, 2014, for
the failure of group companies SIRECL and SHICL to comply with the apex
court's August 31, 2012 and December 5, 2012 orders to return the
investors' money which in 2012 was Rs.24,000 crore. This amount on
account of interest component has increased substantially.
For
Sahara's "final chance" to raise the money, the court extended the
communication facilities, including a laptop, to Roy and two other
directors from the existing two hours a day to five hours. However, it
declined their plea for extension of being shifted to the conference
hall of the Tihar Jail court complex.
The court directed Sahara
to submit the outlines of the current proposal it was negotiating with
an off-shore lender to market regulator SEBI and amicus curiae Shekhar
Naphade so that they could examine its seriousness and if it was worth
pushing. It asked Sahara to extend full co-operation to the SEBI and
Naphade and give any clarification they may seek.
Noting that
earlier two attempts by Sahara to raise the money had failed, the court
said: "We are also thinking of appointing a receiver to auction Sahara
assets to raise the money in a transparent manner."
After all,
the orders of the court have to be taken to a logical conclusion, the
court observed saying that a person should not remain in custody
indefinitely and it was also not good for the system.
Urging the
court not to embark on such a course, Sibal said: "Please don't do that.
If my hands and feet are tied, how can I walk? Give me that little
time. The real estate market is in doldrums and has collapsed. I must
get a fair price, satisfy the court and also not be taken for a ride."
Observing
that Sibal "appeared to be hopeful", the court, however, indicated that
if a third attempt also fails, then the court will embark on appointing
a receiver to secure the compliance of its order.
At the outset,
Sibal contested the Reserve Bank of India's contention raised in the
court on February 24 on Sahara India Financial Corporation Ltd, wrongly
giving the proceeds of FDs, bonds and securities to the tune of
Rs.484.67 crore to its partnership firm Sahara India instead of
depositing in the "SEBI Sahara Refund Account" as directed by the court,
contending these were not covered by the court order restraining Sahara
from alienating any of its assets.
Asking SEBI to respond to the submission by Sahara, the court fixed March 23 for further hearing of the matter.