Apex Court of India refuses to free Subrata Roy from custody

The Supreme Court on Wednesday declined Sahara Group chief Subrata Roy’s plea for release from jail along with his two other directors.
The trio were taken into guardianship March 4 for rebelliousness of August 31, 2012, request to give back financial specialists’ cash that Sahara’s two land organizations – Sahara India Real Estate Corporation Limited (SIRECL) and Sahara Housing Investment Corporation Limited (SHICL)- had gathered through alternatively completely convertible debentures (Ofcds) in 2008-2009.
“We see, however nothing has changed,” said the Supreme Court Bench of Justice T.s. Thakur, Justice Anil R. Dave and Justice A.k. Sikri as senior advocate Rajeev Dhavan urged the court to “generous consider their discharge till February 2015”.
Telling the court that Roy and his two executives Ravi Shankar Dubey and Ashok Roy Choudhary were at that point in authority for around ten months, Dhavan urged the court to “give him a chance to turn out in house capture”.
The apex court by its March 26, 2014, order had asked the Sahara’s two real estate companies SIRECL and SHICL to deposit with market regulator SEBI Rs.5,000 crore in cash and another Rs.5,000 crore in bank guarantees as a part payment of Rs.17,400 crore of investors’ money collected by then through OFCDs in 2008-2009. This was also a condition for their release from custody.
The amount of Rs.17,400 crore that the court by its August 31, 2012, order had directed to be returned to investors has more than doubled as court by its said order had also held that investors’ money would be returned along with 15 per cent interest.
While declining Roy’s plea for release, the court held back its nod to OSS Life Ltd. taking over the loan liabilities of its three overseas hotels – Grosvenor House Hotel in London and the New York Plaza and Dream New York hotels in New York – from Bank of China.
The court asked Sahara counsel S. Ganesh to address the inquiries from the amicus curiae Shekhar Naphade, who told the court that advance that Sahara was raising from the abroad funds was hit by the procurements of the Foreign Exchange Management Act (FEMA).
Amicus Curiae told the court such foreign loans can only be raised for capital investment or investment in infrastructure projects and not for liquidating debts.
Asking Sahara to address the questions from Naphade, the court allowed the business controller Securities and Exchange Board of India (SEBI) to look for elucidation from Sahara in the event that it so needed. It coordinated the further knowing about the matter January 9, 2015.
In the request, the court permitted SEBI to return Rs.28.1 crore to the financial specialists who have different stores with two Sahara substances SIRECL and SHICL.