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Pay up Rs 1,500 crore to SEBI: SC to Sahara chief

Allows publication of Aamby Valley sale notice
Last Updated 25 July 2017, 19:21 IST
The Supreme Court Tuesday directed Sahara group chief Subrata Roy to deposit Rs 1500 crore by September 7. It also allowed the Bombay HC, the official liquidator, to publish sale notice of Amby Valley properties on August 14.
 
A three-judge bench presided over by Justice Dipak Misra rejected an earnest plea made by senior advocate Kapil Sibal, representing the group, for 18 months time to deposit the money to the Sebi-Sahara account. The counsel agreed that the money was due to the tune of Rs 9,000 crore.
 
“The issue, as presently perceived, is the bona fides of the respondent-contemnor and that can be spelt out or translated by action and the action is deposit of the dues.... Indulgence has the propensity to give rise to procrastination which is the murderer of justice,” the bench, also comprising Justices Ranjan Gogoi and A K Sikri, said.
 
Sibal contended that when property of the group with value of more than Rs 34,000 crores, has been attached and the group was not allowed to carry on business, the court should grant reasonable time of 18 months to deposit the amount.
 
He said these assets have got no value until developed, which would require time.
 
The bench, however, told him, “Our mind is clear. We don't intend to send you to jail. You have properties, you have to pay. It is final execution proceedings.”
 
Supporting Sibal, senior advocate Mukul Rohatgi urged the court to modify the order that restrained the group to carry on with its business and develop the land owned. The bench, however, questioned him as who he was representing. On his submission, he was representing one of the group companies, the bench asked him to file record as which company he was appearing for.
 
Though Sibal maintained that the official liquidator cannot be appointed under the law when the assets of the group was more than the liabilities, the bench allowed the official liquidator to publish sale notice of Amby Valley project in Lonawala on August 14. It directed for deposit of Rs 1500 crore including remaining of 305.21 crore by September 7.
 
Sibal also pointed out to the court that the group has sent 127 truckloads of documents – relating to the investors -- to the Sebi for which it was charged Rs 60 crore but the market regulator has been able to disburse only Rs 50 crore to the investors.
 
“If money comes, then we will decide if investors are real, fictional or have come from moon,” the bench said, adding, “time and again, we have said in no uncertain terms that we will decide about the investors only after the money is paid.”
 
The court also reminded that Sahara chief Subrata Roy has been granted parole in order to enable him to pay the money. It put the matter for further consideration on September 11.
 
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(Published 25 July 2017, 12:37 IST)

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