Pay Rs 710 cr by July 4, SC tells Subrata Roy

The Supreme Court on Monday warned Sahara chief Subrata Roy that he would be sent to custody if he is unable to deposit the balance amount of Rs 710 crore out of the promised Rs 1,500 crore to Sebi by July 4.

“Money must come. Money must come. If money comes, there is no pleasure in sending contemnor (Roy) to jail. There is a simple formula – pay and get away,” a bench of Justices Dipak Misra and Ranjan Gogoi said.

“If the balance amount is not paid by that date (July 4), we will be compelled to send contemnor to custody... we are sure that the situation would not arise,” the bench added.

The court also expressed displeasure over Roy’s failure to deposit Rs 1,500 crore by June 15 as promised on April 27. It reminded senior advocate Kapil Sibal, Roy’s counsel, that he had assured that if the two cheques for Rs 1,500 crore were not honoured, the Sahara chief could be sent to custody.

Sibal submitted that Roy had already deposited 790.18 crore, following the sale of shares in a London hotel. He sought more time so that the balance amount of Rs 709.82 crore could be deposited. The bench allowed the plea as Sebi’s counsel, senior advocate Arvind Datar, raised no objection.

The court, meanwhile, declined a plea by the Sahara Group to sell 87 acres in Haridwar, Uttarakhand, at less than 38% of the circle rate. Instead, it directed Sebi to get the property auctioned by employing a government-approved agency within 15 days at not less than 90% of the circle rate. The official liquidator of the Bombay High Court submitted drafts of the terms and conditions for the sale of the Amby Valley properties, which, the bench said, would be considered on July 5, the next date of hearing.

During the hearing, the court indicated that it would consider the question of interest after the Sahara chief is able to pay the principal amount.