Published On:Friday, August 1, 2014
Posted by Unknown
For 10 days, Jailed Sahara Chief Subrata Roy Can Stay in Conference Room
The Supreme Court has allowed Subrata Roy, the chief of the Sahara group of companies, to stay in and use the conference room at Delhi's Tihar Jail for 10 days while he negotiates the sale of his properties, including three hotels overseas.
Mr Roy has been lodged in Tihar Jail since March this year.
The court emphasised today that it was allowing "this arrangement for 10 working days only to negotiate sale of properties." It has also allowed two Sahara directors, also in jail, to stay in the conference room along with Mr Roy.
On the court's orders the Sahara chief can bring to the conference room a mobile phone, a desktop computer and two laptops. Two secretarial assistants and one technician will be allowed to help them from 6 am to 8 pm on these 10 working days. The Tihar Jail will provide video-conferencing and internet facilities, for which Sahara will pay.
Mr Roy, 66, has been arrested over his group's failure to repay lakhs of small investors who were sold bonds that were later declared illegal. Numerous attempts by lawyers to have him released on bail have been unsuccessful.
The court had asked Sahara to deposit Rs. 10,000 crore initially to secure the release of its top man on bail. Now, the Income Tax department has told the court that Sahara has to pay Rs. 10,049 in tax dues.
Sahara has said it does not have the kind of money it has been ordered to pay to secure bail for its chief and has been offering to do so in installments.
Sahara, whose assets include the landmark Plaza hotel in New York and Grosvenor House in London, has also offered to sell its three overseas hotels to meet the payment demands. The judges had asked for more information, including approval from Bank of China, with which the assets are pledged.
Mr Roy's lawyers had pleaded that he needs to be able to meet with representatives of prospective buyers and conduct negotiations through videoconferencing. At the last hearing, the judges had asked Mr Roy's lawyers and jail officials to agree on a plan to be reviewed today.
In 2012, the Supreme Court ordered Sahara to repay, with interest, all investors who subscribed to bonds sold by two of its businesses, saying the company had not met the rules prescribed the Securities and Exchange Board of India (Sebi).
While Sahara says it has repaid most of the money and that the remaining sum owed is about Rs. 2,500 crore, the Supreme Court and the Sebi have disputed that.
