Sahara India Pariwar faces Supreme Court crackdown, Subrata Roy barred from leaving India

Oct 28 2013, 21:36 IST
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Sahara India Pariwar chief Subrata Roy has been barred from leaving India till his group hands over a Rs 20,000 cr title deeds. Sahara India Pariwar chief Subrata Roy has been barred from leaving India till his group hands over a Rs 20,000 cr title deeds.
SummarySupreme Court tells Sahara India Pariwar: 'We cannot trust you anymore.'

Holding that it was playing "hide and seek" and cannot be trusted any more, the Supreme Court today directed the Sahara India Pariwar (Sahara Group) to hand over title deeds of its properties worth Rs 20,000 crore to SEBI warning that failure to comply would mean Subrata Roy cannot leave India.

Making it clear that there is no "escape" from depositing the investors' money with the market regulator, the apex court also asked the group to also give valuation reports of the properties to SEBI which will verify worth of assets.

A bench of justices K S Radhakrishnan and J S Khehar, which was about to restrain Roy from leaving the county till documents are handed over, however, said that he will not be allowed to go abroad without its permission if order is not complied in three weeks.

Roy's counsel had, earlier, pleaded that his reputation and business will be hit.

"You have driven everybody round. From day one restraint was ours," the bench replied when Roy's counsel C A Sundaram pleaded that his behaviour has never caused any suspicion.

"You indulge too much in hide and seek. We cannot trust you any more," the bench said adding "There is no escape for you and the money has to come."

The bench, however, assured the Sahara that its interests will be protected if investors money is paid.

"Rest assured that we will protect you if you give the money," it said and posted the case for hearing on November 20 when it would consider passing further orders on what to be done to the property, whose title deeds will be handed over to SEBI.

At the outset, Sundaram submitted that it is not possible to pay Rs 20,000 in cash and the company would liquidate if it is directed to pay cash.

"I am finished if I have to pay Rs 19,000 crore cash. My company would liquidate. I am over as company if I have to pay the case," he said adding that banks are also not willing to grant loan as they do not consider it safe.

He gave details of properties including Ambey Valley and said that title deeds of various assets would run in thousands of pages as 30,000 title deeds are there.

SEBI, however, expressed reservation over taking title deeds and said that the group itself should sell the properties and hand over the cash

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