No bar on assets but Subrata Roy still behind bars

The Supreme Court (SC) dismissed Sahara chief Subrata Roy's plea to be put under house arrest instead of being lodged in Tihar Jail on Wednesday, but allowed the Group to sell its properties to raise Rs  5,000 crore in cash and an equivalent amount as bank guarantee for securing bail.

Roy, who is in Tihar Jail since March 4, was earlier directed by the court to pay Rs  5,000 crore in cash and furnish a bank guarantee of similar amount as a pre- condition for his bail.

A two- Judge Bench comprising Justices T. S. Thakur and A. K. Sikri permitted the Group to sell immovable properties it owns in nine cities, but made it clear that they will not be sold below the circle rate and buyers should not be connected or related to the Group. Sale proceeds will be deposited in a separate bank account maintained by the Securities and Exchange Board of India ( Sebi), which, in turn, will release title deeds of the properties in favour of the purchasers, the court said.

The Bench also lifted the embargo on encashment of Sahara Group's fixed deposits and bonds and said that they will also be kept by Sebi. The Bench allowed Sahara to mortgage its properties in Aamby Valley, Pune, for arranging the bank guarantee from a nationalised or a scheduled bank, not a cooperative bank.

The Bench rejected a fresh proposal of Sahara about the payment schedule under which the Group said it would like to deposit Rs  3,000 crore cash in five days and another Rs  2,000 crore in cash in the next 30 days thereafter.

The Group would furnish a bank guarantee for the rest of Rs  5,000 crore in 60 days after selling its equities in two overseas hotels- each in New York and London, it added.

The Bench referred the matter to a larger three- Judge Bench which will be constituted by Chief Justice of India R. M. Lodha.

It also appointed senior advocate F. S. Nariman as an amicus curiae to assist the court in the case and said that he will be given Rs  1.10 lakh fees per hearing and the money shall be paid by Sebi, which, in turn, will deduct it from Sahara's account.

Immediately after the judgment was pronounced, Saharas counsel advocates Keshav Mohan and Gaurav Kejriwal submitted that the permission to sell foreign properties is vital as the Group is dependent on them for raising the money quickly.

The Bench also said that the issue can be raised before the larger Bench. The court added that a faster way of reaching near the target for the Sahara Group is to utilise the money already lying in the bank.

Senior advocate S. Ganesh, also appearing for Roy, made an oral plea that the court should consider granting five days of relief like ' parole' to Sahara chief to meet his 92- year- old ailing mother, who is in a bad shape. The Bench said that to consider such plea, a formal application has to be filed as it would require verification of facts considering the nature of matter.

Courtesy: Mail Today