The Telegraph
Monday , May 19 , 2014
CIMA Gallary

Sahara offers to sell hotels abroad, but SC asks for ‘logical & acceptable’ proposal

New Delhi, May 19 (PTI): The Supreme Court on Monday asked the Sahara Group to come out with a “logical” and “acceptable” proposal on paying Rs 10,000 crore for getting its chief Subrata Roy out of jail while refusing to entertain his plea for being put under house arrest in Lucknow.

A new bench of justices T.S. Thakur and A.K. Sikri, constituted after Justice J.S. Khehar recused himself from hearing the matter, said that a deadlock won't help anyone and asked the group to come out with a fresh proposal.

Sahara had told the Supreme Court that it is willing to sell its properties including hotels located in London and New York.

”This stalemate would not help anyone. Come out with a proposal which is logical and acceptable to us,” the bench said.

Observing that the preliminary hearing has been “very productive”, the bench said the matter would be taken up next week and asked the group to prepare its proposal by then.

Senior advocate Rajiv Dhawan, appearing for the group, contended that Roy has been behind bars for the last 75 days and pleaded that he should be taken out from jail and be put under house arrest in Lucknow.

The bench, however, said that at present it is not going to pass any order.

Roy, 65, who has been in jail since March 4 for Sahara’s failure to refund over Rs 20,000 crore to depositors, was asked by the court to make a fresh proposal for paying Rs 10,000 crore to get bail.

The court had passed the order on a petition filed by Roy challenging constitutional validity of its order passed on March 4 by which he was sent to jail for not complying with its order to deposit around Rs 20,000 crore of investors money with the Securities & Exchange Board of India.

The bench had come down heavily on the group for “systematically” frustrating and flouting all its orders with impunity on refunding investors' money.

It had said Sahara “adopted a demeanour of defiance constituting a rebellious behaviour, not amenable to the rule of law” and justified its decision to send Roy along with two promoters of two Sahara companies to jail.