Markets regulator SEBI has filed a petition with the Supreme Court to direct Sahara India’s chief Subrata Roy to pay up Rs 62,600 crore due to investors and asked for his parole to be cancelled and be taken into custody if he fails to pay.
The Securities and Exchange Board of India (SEBI) said in the court filing that two companies of the Sahara India Parivar group, and Subrata’s outstanding liabilities currently stand at Rs 62,600 crore including interest, Bloomberg reports. This is up from Rs 25,700 crore that the group’s chief was ordered to pay in 2012.
This was after Supreme Court ruled that year the group companies violated the securities law and raised over $3.5 billion illegally in cash from millions who ‘couldn’t avail banking facilities’. Subrata was then sent to jail after the group, and he didn’t pay up and SEBI failed to trace these investors.
According to a Reuters report, SEBI told the SC that Sahara not complying with the top court’s orders in 2012 and 2015 to pay back the money it collected from investors along with 15% annual interest has caused it ‘great inconvenience’.
“Saharas have made no efforts whatsoever to comply with the orders and directions. On the other hand, contemnors' liability is increasing daily and contemnors are enjoying their release from custody," Reuters quotes SEBI has saying in the court filing.
Subrata Roy was arrested on March 4, 2014 and sent to Tihar Jail after he didn’t show up at a contempt of court hearing. He was granted bail in May 2016 to attend his mother’s funeral and his parole has been extended ever since.
SEBI said in the court filing that Subrata has deposited over Rs 15,000 crore so far and the balance with interest has now come up to over Rs 62,600 crore.
However, A Sahara group spokesperson said that it deposited Rs 22,000 crore with SEBI already.
The company has denied any wrongdoing and has said that SEBI’s demand is ‘absolutely wrong’. It told the publications in a statement that the group companies have already paid back investors and claimed that SEBI ‘mischievously added 15% interest’, calling it a case of double payment.