Subrata Roy not liable for Rs 24,000 crore refund: Sahara to SC

New Delhi:Sahara group today told theSupreme Court that its chief Subrata Roy is not liable forrefunding Rs 24,000 crore collected by its two firms frominvestors, countering the arguments of SEBI which wanted hispassport to be impounded till the contempt plea against himand companies is decided.

Senior advocate Ram Jethmalani, appearing for a Saharafirm facing contempt for not refunding the amount as per apexcourt order, submitted that the redemptions have already beenmade by Sahara firms.

A bench of justices K S Radhakrishnan and J S Khehar,questioned Jethmalani’s stand, saying that it is contrary tothe affidavit by the company earlier.

“It is not correct. Your affidavit says otherwise. Youraffidavit is staring at us,” the bench said.

Jethmalani also urged the court to take a sympatheticview, contending that contempt proceedings did not lie inthe present facts and circumstances and Roy is not liable forrepayment.

“I donot deny that he is Bhishmapitamah of family(head ofSahara group) but it does not mean that he is liable,” hesaid.

The market regulator, however, submitted that all themoney raised by Sahara India Real Estate Corp Ltd (SIREC) andSahara India Housing Investment Corp Ltd (SHIC) went to Saharagroup sister companies and Roy is equally liable.

“Roy was repeatedly seeking appointment with SEBIchairman and he had communicated with SEBI on this issue manytimes. He cannot dissociate now saying that he has nothing todo with the companies,” senior advocate Arvind Dattar said.

“The Directors and promoters of the companies should begiven maximum imprisonment. They should not be heard till Rs24,000 crore is deposited with SEBI,” he said, adding, “Theyshould be directed to be present in court and their passportsbe impounded till the matter is decided by court”.

He sought maximum punishment for Roy and others underSection 12 of Contempt of Court Act which provides punishmentupto six months jail term.

The court was hearing three contempt petitions filedby SEBI against Roy, the two firms and their directors .

The apex court had on August 31 last year directed theSahara group to refund the amount by November end. Thedeadline was further extended and companies were directed todeposit Rs 5120 crore immediately and Rs 10,000 crore in firstweek of January and remaining amount in first week ofFebruary.

The group, which had handed over the draft of Rs 5,120crore on December 5, has failed to pay the rest of the amount,SEBI told the court.The apex court had on August 31 last year directed thetwo Sahara group companies to refund the money to theirinvestors within three months with 15 per cent interest perannum. It had also said that SEBI can attach properties and freeze bank accounts of the companies if they fail torefund the amount.

The two companies, their promoter Roy and directorsVandana Bhargava, Ravi Shankar Dubey and Ashok Roy Choudharywere told to refund the collected money to the regulator.

PTI