Subrata Roy’s can be released if furnish Rs 5,000 crore in cash and Rs 5,000 crore in bank guarantee

SCThe Supreme Court today refused to grant immediate bail to Sahara chief Subrata Roy and set terms for his release. It linked the release of Roy to the full payment of dues totaling over 36,000 crore rupees. The Apex Court has said that Subrata Roy’s release from jail is subject to furnishing 5,000 crore rupees in cash and 5,000 crore rupees in bank guarantee. The bench of the Court said Sahara has to arrange the payment of the total dues in nine equal installments in 18 months from the date of his release. Accordingly, Sahara is required to pay 3,000 crore rupees every two months.

The court said the guarantee would be invoked if Sahara defaulted on two installments, not necessarily consecutive. If three installments defaulted, not necessarily consecutive, Roy has to surrender or will be arrested. Roy is required to submit his passport and cannot leave India during these 18 months. He is also required to report fortnightly to Delhi police about his domestic movements. The Supreme Court said 36,000 crore rupees have to be paid by Sahara to SEBI in 18 months and nine installments from the date of release of Roy.

The Apex Court then extended by eight weeks the custody of Roy in Tihar jail for arranging the amount for his release. Roy has been in jail since March 4, 2014 after he had failed to comply with the apex court’s direction to refund the money of the depositors who had invested money towards Sahara’s housing project. The two Sahara group companies had collected money from three crore investors in 2007-2008. The apex court on August 31, 2012 had said the group was required to refund 24,000 crore rupees with 15 per cent interest in three months to the depositors.