Sahara chief Subrata Roy to remain in jail, hearing adjourned to April 9

Sahara chief Subrata Roy will have to remain in jail for more time as the Supreme Court today adjourned the hearing to April 9. Sahara told the top court today that it cannot pay Rs 5000 crore upfront to secure bail for its chief and offered to pay in installments. Mr Roy, 65, was arrested on February 28 and has been held in Delhi's Tihar Jail since March 4 after failing to appear at a contempt hearing in a long-running legal battle between the group and the securities regulator over the refund of billions of dollars to investors. Sahara's chief lawyer pleaded with the Supreme Court for an early hearing but it was declined. Another Sahara lawyer Rajeev Dhavan said Mr Roy may be kept under house arrest but the court adjourned the case. The top court said, "You have money to pay thousands of crores in cash, why not pay Rs 10,000 crore." Sahara proposed in court today that it would pay Rs 2500 crore immediately and another Rs 2500 crore 21 days after Mr Roy's release. The court has asked Sahara to file its proposal on registry and not hand it over across the table. Hearing Mr Roy's plea that the court order sending him to jail is illegal, the top court observed that putting him behind bars is not a punishment, but to enforce its orders. "Don't interpret March 4th order as punishment, it is just enforcing our orders. We will go into the punishment aspect once contempt proceedings are over. It's not a punishment," the court said. The Supreme Court also observed that "Rs 10,000 crore is not a bail bond. By paying Rs 10,000 crore out of Rs 37000 crores, you will show your bonafide." Last week, the court had asked Sahara to deposit Rs 5,000 crore with the court and furnish a bank guarantee of another Rs 5,000 crore with market regulator SEBI or the Securities and Exchange Board of India. Different proposals offered by Sahara since Mr Roy's arrest to refund investors in installments have been turned down as inadequate by the Supreme Court. Sebi had brought contempt proceedings against Mr Roy and Sahara for failure to comply with a 2012 Supreme Court order to repay billions of dollars to investors. Sahara had earlier argued that it repaid most investors and that its remaining liability was less than the Rs 5,000 crore it deposited with Sebi, a claim that has been disputed by the regulator and the court. Sahara is best known as the former main sponsor of India's national cricket team, as well as owner of New York's Plaza Hotel and London's Grosvenor House. It has a net worth of $11 billion or around Rs. 66,000 crore ($1=Rs. 60) and more than 36,000 acres of real estate, according to its website. It also co-owns the Sahara Force India Formula One auto racing team with liquor baron Vijay Mallya.

Sahara chief Subrata Roy to remain in jail, hearing adjourned to April 9

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