Subrata Roy’s parole was extended till 28 November after he deposited an additional Rs200 crore with market regulator Securities Exchange Board of India, or Sebi.
The Supreme Court also allowed Sahara to re-auction five properties in India that were auctioned earlier by Sebi.
New Delhi: The Supreme Court on Friday extended Sahara chief Subrata Roy’s parole till 28 November.
Roy’s parole was extended after he deposited an additional Rs 200 crore with market regulator Securties Exchange Board of India (Sebi).
A bench comprising Chief Justice of India T.S. Thakur, justices Anil. R. Dave and A.K. Sikri also allowed Sahara to re-auction five properties in India that were auctioned earlier by Sebi.
“We have offers higher than what Sebi has got through auction,” senior advocate Kapil Sibal, representing Sahara, told the court.
The court also asked Sahara for a roadmap for repayment of the entire amount due to investors.
Sibal told the court that by December 2018, Sahara will repay the entire amount to investors.
According to Sahara, the company has repaid at least Rs19,000 crore to Sebi out of the Rs27,000 crore owed by it although Sebi pegs this figure at Rs 47,000 crore, including interest to its investors in its affidavit submitted to the court this week.
Roy was granted parole in May after he had been in judicial custody along with his associates Ashok Roy Choudhary and Ravi S. since 4 March 2014 for failing to deliver on promises to return the money two Sahara firms collected from depositors.
On 26 March that year, the court set the bail amount at an unprecedented Rs10,000 crore—half in cash and half as bank guarantee.
In March, Sahara completed the cash payment of Rs5,000 crore towards bail for Roy and the two associates, with the bank guarantee of Rs5,000 crore pending.
Sebi moved the apex court in August 2012 to recover Rs36,000 crore from Sahara in order to refund investors who purchased securities from two group firms through schemes that the market regulator found illegal.
Sebi asked the court to appoint a receiver who would dispose of Sahara’s domestic and offshore properties and raise the money. As of now, both Sahara and Sebi are authorized to sell Sahara’s properties.
The case will be heard next on 28 November.
Sahara has filed a defamation case in a Patna court against Mint’s editor and some reporters over the newspaper’s coverage of the company’s dispute with the Securities and Exchange Board of India. Mint is contesting the case.