In a jolt to Sahara group and its chief Subrata Roy, the Supreme Court on Wednesday dismissed a plea to let him come out of prison and be placed under house arrest.
A bench of Justices TS Thakur and AK Sikri also junked the group's request to modify the order whereby Sahara was asked to first furnish Rs 10,000 crore as security to enable Roy and two other directors come out of the jail.
The bench however allowed Sahara to encash bank deposits and security yo arrange Rs 2500 crore and also sell other properties in nine cities to raise more money.
It also said that Sahara may charge immovable properties in Pune's Ambey Valley to raise Rs 5,000 as bank guarantee.
However, after Sahara manages to raise money, it will have to approach a new three-judge bench since the court referred the case to a larger bench today.
As far as three properties in a broad were concerned, the court asked the group to adduce all the requisite documents and approach the new bench for further directions.
Last week, softening its stand on the release of Sahara Group chief Subrata Roy, the Supreme Court had said that Roy and the two directors cannot be lodged in jail and the group’s accounts attached when the court wants the group to arrange Rs 10,000 crore as security.
“You cannot keep them in jail and disable them from depositing money. You cannot have it both ways. You cannot stop them from selling properties, attach all their accounts and ask them to come out only when they can pay he money,” the bench had said.
The bench, however, also clarified that it could not modify the order passed by the previous bench regarding the quantum of security money.
It said it could lift the embargoes on selling properties and operating the bank accounts to enable them arrange money.
“The conditions may be onerous but the court that put you inside deemed such conditions to be appropriate. For this purpose, we will, however, allow you to sell and mortgage some properties subject to certain safeguards and satisfaction of the Sebi,” said the bench.
While reserving its order on Sahara’s fresh application for release of Roy and two other directors, the court also asked the group to produce “adequate communication” with Bank of China, the creditor, including its nod, for sale of three