The Supreme Court sets terms for Sahara chief’s release from jail

New Delhi(PTI): The Supreme Court today asked jailed Sahara chief Subrata Roy to furnish Rs 5,000 crore in cash and a bank guarantee of equal amount to secure his release from the prison.

Roy will, however, remain in jail as senior advocate Kapil Sibal appearing for him told the court that there was a difficulty in furnishing the bank guarantee of Rs 5,000 crore as one of the financial institutions had backed out.

A bench of justices T S Thakur, A R Dave and A K Sikri while pronouncing its order said, “We have accepted the format of bank guarantees”, subject to certain conditions.

The court also asked the 65-year-old Roy, who has been in Tihar jail since March 4, 2014, to pay Rs 36,000 crore to the SEBI within 18 months and in nine instalments from the date of release.

It allowed market regulator SEBI to encash the bank guarantees to be furnished by the Sahara chief, in case he defaults in the payments of two instalments.

The bench further said that if Roy defaults in payments in three instalments, then he will have to surrender himself back to the jail.

“We direct them (Roy and two other jailed directors) to deposit their passport with the court. They shall not leave the country without prior permission of this court,” the bench said.

It also asked Roy to keep apprising fortnightly the Tilak Marg police station here about movements inside the country.

The bench, meanwhile, extended by eight weeks the facilities like telephone and internet to Roy inside the jail.

Earlier on May 14, while reserving its order, the court had asked the counsel of Sahara Chief to furnish the “scheme” within two weeks giving details as to how the group proposes to proceed with the sale of its assets and payment to the SEBI.

The apex court on August 31, 2012 had said the group was required to refund Rs 24,000 crore with 15 per cent interest in three months to the depositors.

Posted by on June 19, 2015. Filed under Nation. You can follow any responses to this entry through the RSS 2.0. Both comments and pings are currently closed.