SC extends Sahara chief Roy's parole till 16 Sept, asks him to pay Rs300 cr more

The Supreme Court on Wednesday extended the bail granted to Sahara Group chief Subrata Roy till 16 September on condition that Sahara pays an overdue amount of Rs300 crore to the Securities and Exchange Board of India (Sebi).

The court directed Subrata Roy to pay up the Rs300 crore by 16 September or go back to jail.

Sahara chief Roy has been in jail fore more than two years for his failure to return over Rs25,000 crore to the investors who had bought debentures in his companies.

A three-member Bench headed by Chief Justice TS Thakur rejected Roy's offer to pay Rs200 crore in a month, saying he would take about 10 years to return just the principal amount, considering his past.

Roy's counsel, senior advocate Kapil Sibal, vouched for his client that would repay the entire amount in 18 months as many of the properties, including the three luxury hotels in London and New York, were likely to be sold soon.

''You have repeatedly failed to honour your promises. If you persist with this, you will be back in jail,'' the bench warned Roy.

Counsel Sibal pleaded with the court not to specify in its order that Roy would have to go back to jail, but the bench said ''it goes without saying''.
 
The apex court had ordered the release of Roy on parole on 6 May for performing the last rites of his mother Chhabi Roy and since then has been getting extension by promising to return specified amounts.

Roy had been in jail since 4 March 2014 for his companies' failure to return the funds collected in the form of debentures, which were later declared illegal by market regulator Sebi and the apex court.

The bench, also comprising Justices Anil Dave and AK Sikri, allowed the 67-year-old Roy to dispose of any of his properties, provided the sale price was not less than 90 per cent of the market value. Sibal, however, offered recovery of at least 110 per cent of the ruling rate.

The bench said it was ''tired of the games being played'' by the group by making several promises, only to dishonour these subsequently.