Supreme Court Refuses To Release Subrata Roy From Jail

The Supreme Court has rejected Sahara Group Chairman Subrata Roy's bail plea. Sahara Group had pleaded before the court to grant Roy bail for two months. It had placed a billion-dollar plan before the court and also submitted 21 post-dated cheques before SEBI, pledging Rs 1,885 crore by June 2015.

Roy has been languishing in Tihar jail for more than nine months due to Sahara’s failure to pay back Rs 24,000 crore that it had garnered through bonds, which were declared as illegal. “Let us be realistic you can come out only if you make the payment,” the court said. It added that Roy must pay Rs 5,000 crore in cash and another Rs 5,000 crore as bank guarantee. “We don’t see any change in the circumstances going by the history of the litigation. The balance amount you are unable to arrange for your release. What will happen after you are released for payment and refund to investors?” it asked.

The bench said it would grant him bail only if he "would pay the amount of Rs 10,000 crore - out of which Rs 5,000 crore to be deposited before this court and for the balance a bank guarantee of a nationalised bank be furnished in favour of SEBI and be deposited before this court."

The Supreme Court had earlier allowed the company to sell its four domestic properties to raise money for Roy’s release. Sahara told the apex court that there were some issues in selling the Pune property, from which it expected to raise Rs 550 crore. It also informed the court that it has “almost complied with the cash component of the interim bail order and is in the process of finalizing mortgage of its three foreign hotels to furnish the bank guarantee.”