IANS/New Delhi

The Supreme Court yesterday gave Sahara Group chief Subrata Roy a “final chance” to raise Rs10bn - Rs50bn in cash and Rs50bn in bank guarantee— to make part repayment of investors’ money raised by the company in 2008 and 2009 — which is also a condition for his and two other directors’ release from custody.
Noting that two earlier attempts by Sahara to raise the money had been “aborted”, a bench of justice T S Tkakur, justice Anil R Dave and justice A K Sikri decided to give a last chance as senior counsel Kapil Sibal told the court that they were “hopeful” that their attempt to raise money would succeed and Sahara would be able to comply with the court’s order. The court recorded Sibal’s statement that “the earlier two attempts have aborted and a final chance be given to discharge its obligation”.
Roy and two other directors - Ravi Shankar Dubey and Ashok Roy Choudhary - are currently in custody since March 4, 2014, for the failure of group companies SIRECL and SHICL to comply with the apex court’s August 31, 2012 and December 5, 2012 orders to return the investors’ money which in 2012 was Rs240bn. This amount on account of interest component has increased substantially.
For Sahara’s “final chance” to raise the money, the court extended the communication facilities, including a laptop, to Roy and two other directors from the existing two hours a day to five hours. However, it declined their plea for extension of being shifted to the conference hall of the Tihar Jail court complex.
The court directed Sahara to submit the outlines of the current proposal it was negotiating with an off-shore lender to market regulator Sebi (Securities and Exchange Board of India) and amicus curiae Shekhar Naphade so that they could examine its seriousness and if it was worth pushing. It asked Sahara to extend full co-operation to the Sebi and Naphade and give any clarification they may seek.
Noting that earlier two attempts by Sahara to raise the money had failed, the court said: “We are also thinking of appointing a receiver to auction Sahara assets to raise the money in a transparent manner.”
The orders of the court have to be taken to a logical conclusion, the court observed stating that a person should not remain in custody indefinitely and it was also not good for the system.
Urging the court not to embark on such a course, Sibal said: “Please don’t do that. If my hands and feet are tied, how can I walk? Give me a little time. The real estate market is in doldrums and has collapsed. I must get a fair price, satisfy the court and also not be taken for a ride.”
Observing that Sibal “appeared to be hopeful”, the court, however, indicated that if the third attempt too failed, the court would embark on appointing a receiver to secure the compliance of its order.