SC warns Sahara chief on non payment

The Supreme Court on Monday warned Sahara chief Subrata Roy that if he is not able to pay balance amount of Rs 710 crore out of the promised sum of Rs 1500 crore to the Sebi by July 4, he would be sent to custody.
 
“Money must come. Money must come. If money comes, there is no pleasure in sending contemnor (Roy) to jail. There is simple formula – pay and get away,” a bench of Justices Dipak Misra and Ranjan Gogoi said.
 
“If the balance amount not paid by that date (July 4), we will be compelled to send contemnor to custody...we are sure that situation would not arise,” the bench added.
 
The court also expressed its displeasure over Roy's failure to deposit Rs 1500 crore by June 15 as promised on April 27. It reminded Roy's counsel senior advocate Kapil Sibal that he had then assured that if the two cheques to the sum of Rs 1500 crore were not honoured, the contemnor could be sent to custody.
 
Sibal submitted that Roy had already deposited 790.18 crore received after sale of shares in a London hotel. He sought extension of time so that the balance amount of Rs 709.82 crore could be deposited.
 
The bench allowed the plea as Sebi's counsel senior advocate Arvind Datar made no objection to it.
 
The court, meanwhile, declined a plea by Sahara group to sell 87 acres of land in Haridwar in Uttarakhand at less than 38 % of the circle rate. Instead, it directed the Sebi to get the property auctioned by employing a government-approved agency within 15 days at not less than 90 % of the circle rate.

The official liquidator of the Bombay HC submitted drafts of the terms and conditions for sale of Amby Valley properties, which, the court said, would be considered on July 5, the next date of hearing. During the hearing, the court indicated that it would consider the question of interest after the Sahara chief is able to pay the principal amount.