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Supreme Court denies bail to Sahara chief Subrata Roy

Jul 22, 2014 04:46 PM IST Business Business

New Delhi: The Supreme Court on Tuesday refused to release Sahara Chief Subrata Roy on bail or parole. The court said that Roy cannot be released for 40 days on bail.

The court allowed Roy to mortgage or sell hotels in New York, London in order to raise the money. The apex court said, "If Roy wants raise to the money he can give concrete proposal to the Supreme Court."

The court told Roy, "We will allow you to hold negotiations to sell properties in police custody whenever and wherever you like. We will allow you to hold negotiations with the clients outside jail between 10 AM to 4 PM under police custody."

The bench, also comprising justices Anil R Dave and AK Sikri asked him to approach the court when there is a proposal and assured him that suitable arrangements would be made by it.

The bench also allowed Sahara to sell nine properties in the country along with hotels Dream Downtown and The Plaza in New York and Grosvenor House in London.

It also appointed senior advocate Shekhar Naphade as amicus curiae to assist the court in dealing with the case in which the group is supposed to pay around Rs 37,000 crore to wind up the proceedings in the apex court.

Roy had pleaded that he be allowed to get out of jail on parole or on interim bail for at least 40 days to sell his properties to raise Rs 10,000 crore to get bail.

Roy, who was sent to jail on March 4 this year for non-refund of over Rs 20,000 crore to depositors, was asked by the court to pay Rs 10,000 crore to get bail, out of which Rs 5,000 crore in cash and rest of the amount in bank guarantee.

Sahara has so far raised Rs 3,117 crore which has been deposited with the market regulator.

The group, however, has been claiming that it has already repaid money to 93 per cent investors.

On the last day of hearing on July 4, Roy pleaded to the court to show 'raham'(mercy) and allow him to come out of jail to sell his properties.

"Raham is what is required now in this case. Today he has spent more months behind bars and his release would enhance chances of negotiation for sale of properties," senior advocate Rajiv Dhawan, appearing for Roy, had submitted.

(With additional information from PTI)