Sahara ready to pay bail for jailed Subrata Roy

 The Sahara Group on Friday told the Supreme Court that it is ready to furnish the Rs 5,000-crore bank guarantee and an equal amount in cash put as condition for bail to its chief Subrata Roy, brightening the prospect of his release after being incarcerated for over one year.

A three-judge bench presided over by Justice T S Thakur allowed the beleaguered company to furnish the bank guarantee and the remaining cash amount by next week after approving its plan for it.

The court, however, was more concerned about the total amount payable by the company to Sebi, out of the amount  collected from investors by two group companies.

Roy, along with two other directors, has been lodged in Tihar jail since March 4 last year over his failure to refund over Rs 24,000 crore with interest to depositors. “We will accept the bank guarantees but we would also like to address the issue of balance amount that has to be paid,” the bench, also comprising Justices A R Dave and A K Sikri, said.

Sebi demands full refund

Senior advocate Arvind Datar, appearing for Sebi, said that while the issue of the total amount to be paid by the company has been raised a number of times, the Supreme Court’s order dated August 31, 2012, still stood ground wherein it was said the group was required to refund Rs 24,000 crore with 15 per cent interest in three months to depositors. Senior advocate Kapil Sibal, however, contended that the amount has not been quantified so far.

Datar pointed out the need to fix the refund schedule of the remaining payment. He also submitted that even the Securities Appellate Tribunal (SAT) did not accept Sahara’s stand on refund.

The court had on March 26, 2014, asked 65-year-old Roy, who has been in Tihar Jail since March 4, 2014, to pay Rs 10,000 crore to get bail, out of which Rs 5,000 crore should be paid in cash, and the rest as bank guarantee.

During the hearing, Sebi accepted the draft of bank guarantees which the Sahara Group had to furnish. The court also allowed Sebi’s plea that bank guarantees would be made encashable by the market regulator if Sahara was unable to pay the balance amount. The court fixed the matter for further consideration on May 14.