Sahara Chief Subrata Roy To Remain In Jail As SC Rejects Pleas

Sahara chief Subrata Roy will have to remain in Tihar jail as the Supreme Court on Tuesday (May 6) rejected his pleas against what was described by his lawyers as ‘illegal detention.’ The apex court said Roy could walk free only if he pays Rs 10,000 crore, which comes to about one-third of his firm's dues to SEBI. But the court also warned that he would be rearrested in case he fails to pay the remaining balance.

Roy had alleged that the court had violated his fundamental rights by sending him to custody in spite of the fact that he was not a defaulter.
The court said it had sent him to jail as Roy had not abided by its August 31, 2014, order to pay back Rs 24,000 crore, along with interest. Till now, Sahara has paid only Rs 5,120 crore and it needs to pay Rs 37,000 crore more to SEBI.

The court also rejected Sahara’s claims that it had paid 93% of the entire amount to its investors by cash. SEBI, too, rejected this claim made by the company.

The court agreed with SEBI and said, "No material worth the name, was ever produced... to establish the defence of redemption, even though ample opportunities were afforded… Despite... close to 40 hearings and putting them to terms, which ought to have shown them that leniency would not be extended forever, the contemnors have remained adamant and steadfast. They made only one deposit of Rs 5,120 crore. Besides that amount, not a single paisa has been deposited.

"If the money could be easily collected and disbursed to the investors then, why not now? The total amount presently payable... has swelled to Rs 36,608 crore. In the above scenario, no other order, but the one passed by us, could have been passed...," the court added.