Sahara case: Subrata Roy to stay in jail as Supreme Court rejects plea

The Supreme Court on Tuesday rejected the plea by Sahara chief Subrata Roy challenging its March 4 order sending him to judicial custody for not complying the order to return investors money by routing it through SEBI.

Roy and two directors were sent to judicial custody for the failure of group’s two companies’ SIRECL and SHICL to comply with its order to return investors’ Rs.24,000 crore that they had collected through Optionally Fully Convertible Debentures (OFCDs).

Roy will continue to remain in custody as the court has asked his counsel to make a revised proposal to return investors’ money to secure his release.

Dismissing Roy’s plea, the apex court bench of Justice K.S. Radhakrishnan and Justice K.S. Khehar said that there is “no merit and same is dismissed”.

The court said that after going through the judgment, Roy could make a revised proposal for returning the investors money as a condition to secure his release.

The court said this as senior counsel Rajiv Dhawan drew the attention of the court to Roy’ earlier proposal to deposit Rs.10,000 crore.

Of the Rs.24,000 crore, Sahara India Real estate Corporation Limited and Sahara Housing Investment Corporation Limited have already deposited Rs.5,120 crore in December 2012 with SEBI.