Sebi wants Sahara Group chief Subrata Roy to pay $8.43 bn, says cancel parole if tycoon fails to pay; petition filed with SC
Market regulator Securities and Exchange Board of India (SEBI) has petitioned the Supreme Court to direct Sahara Group chief Subrata Roy to pay as much as 626 bn rupees (USD 8.43 billion) immediately or cancel his parole if he doesnt. The court filings were seen by Bloomberg
Market regulator Securities and Exchange Board of India (SEBI) has petitioned the Supreme Court to direct Sahara Group chief Subrata Roy to pay as much as 626 bn rupees (USD 8.43 billion) immediately or cancel his parole if he doesn't. The court filings were seen by Bloomberg.
SEBI in its petition said the outstanding liability of the Sahara India Parivar group’s two companies and the group’s chief Subrata Roy stood at 626 billion rupees, which included interest. Roy’s liabilities have grown from Rs 257 billion he was ordered to pay eight years ago.
India’s Supreme Court in 2012 ruled that Sahara group companies violated securities laws and illegally raised over USD 3.5 billion. The companies said monies were raised in cash from millions of Indians who could not avail banking facilities. When Sahara firms failed to pay up, the court sent Roy to jail.
“It is absolutely wrong demand by Sebi,” Sahara group said in an emailed statement on Thursday. Sebi has “mischievously” added 15% interest and it is a case of double payment as the companies have already paid back the investors, according to the statement.
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Roy has so far deposited over Rs 15,000 crore, SEBI has said in its court filings. The court has not yet decided when the case will be heard next.
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