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News18 » Videos » News18 Shorts

Sahara moves SC, calls detention of Subrata Roy, other directors illegal

Mar 12, 2014 10:46 AM IST Business Business
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New Delhi: Sahara on Wednesday moved a petition before the Supreme Court saying its chief Subrata Roy and two directors had been illegally detained by the court.

"They have been put behind bars for contempt, but they were never a party before the Supreme Court," the plea said.

The SC will hear the plea at 2.00 pm on Thursday.

Subrata Roy and two Sahara directors are in jail for contempt after they failed to appear before the apex court despite repeated summons in connection with a refunds case.

According to market regulator SEBI, Sahara owes Rs 24,000 crore to more than three crore investors. SEBI said that Sahara had raised this amount illegally and in violation of rules.

Sahara, however, said that SEBI was making "baseless allegations" against it. It challenged SEBI before the Securities Appellate Tribunal and later, the Supreme Court, both of which upheld the SEBI's orders to Sahara refund the money to investors.

SEBI acted after it had received two complaints from investors who said that Sahara was using illegal means to raise money through the issuance of bonds called OFCDs (Optionally Fully Convertible Debentures) which require permission from SEBI.

Despite repeated summons from the top court, Subrata Roy failed to turn up. He was finally arrested on February 28 by Lucknow Police and jailed in Delhi's Tihar for contempt of court.