SC rejects Sahara’s proposal plan for refunding money

New Delhi – The Supreme Court on Friday refused to accept the Sahara Group’s proposal to pay the entire amount to the Securities and Exchange Board of India (SEBI) in cash installments of Rs. 2,500 crore each at regular intervals of three months, thereby extinguishing all outstanding claims by July 2015.

“The proposal is not proper and you must come out with honourable proposal,” the court said.

The apex court bench headed by Justice K.S. Radhakrishnan was told that the first installment of Rs.2,500 crore will be paid within three working days after the restrain order on the operation of its accounts is lifted.

The court was also told that the Sahara Group may also be returned the titles deeds of its assets that it has submitted to SEBI.

Senior counsel C.A. Sundaram told the court that all the proceeds from the sale of these properties will be kept for returning money to SEBI.

Counsel for the market regulator, however, contested the amount and said that after calculating interest, the total outstanding claim on investors’ money stands at Rs. 37,000 crore.

The apex court, however, allowed Sahara’s financial consultants and lawyers to meet the group’s chief Subrata Roy in jail between 10 am and 12 noon everyday.

Mr. Roy will remain in judicial custody and the apex court said it will hear Sahara’s plea on police custody on Tuesday.