March 27, 2017

Pay Rs 600cr by deadline or go to jail: Supreme Court to Sahara Group Chairman Subrata Roy

Pay Rs 600cr by deadline or go to jail: Supreme Court to Sahara Group Chairman Subrata Roy
The Supreme Court rejected a plea filed by Sahara Group seeking extension of time to pay Rs 600 crore to market regulator Securities and Exchange Board of India (SEBI). The court said that if the company fails to pay the amount by February 6, it’s tainted chief Subrata Roy, currently on parole, shall have to commit himself to jail. Roy cited demonetisation and economic slowdown as reasons for request of extension of time. A bench comprising Chief Justice TS Thakur and Justices Ranjan Gogoi and AK Sikri also said that “too much indulgence” has already been given to the Sahara chief.
 
On October 25, the top court had extended Roy’s parole after the company deposited Rs 200 crore with SEBI for repayment of investors. After spending over two years in jail, Roy was released on parole when his mother died in May this year. His parole, as well as that of directors Ashok Roy Choudhary and Ravi S Dubey, was subsequently extended on the condition that they should deposit money for refunding investors at regular intervals.
 
Roy has been directly charged in the case pertaining to non-refund of nearly Rs 20,000 crores to investor.
 
Market regulator Sebi earlier said that Sahara Group was liable to pay Rs 37,000 crore with interest, of which the principal amount payable was Rs 24,000 crore.
 
Sahara has, so far, returned a total of Rs 18,000 crores to its investors.

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