SEBI moves SC seeking direction to Sahara's Subrata Roy to pay Rs 62,600 cr dues

The Securities and Exchange Board of India (SEBI) has moved the Supreme Court seeking direction against Sahara India Chairman Subrata Roy to pay Rs 626 billion immediately. SEBI has said that if he doesn't yield then his parole must be cancelled and contempt proceedings must begin. No date has been fixed by the top court on when the case will be taken up for hearing.

Highlighting that the outstanding liability of Sahara India Parivar group’s two companies - Sahara India Real Estate Corporation Ltd. (SIRECL) and Sahara Housing Investment Corporation Ltd. (SHICL) - including interest, is 626 billion rupees (Rs 62,000 cr), SEBI said that Roy’s liabilities have increased over a period of eight years from 257 billion rupees.

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In 2012, the Supreme Court had ruled that Sahara group companies violated securities laws and illegally raised over $3.5 billion. Roy's companies raised cash from the public who could not avail banking facilities. When the case surfaced and SEBI undertook the investigation, it was unable to trace the investors. Roy denied any wrongdoing and failed to appear before the Court despite the contempt of court hearing. He was arrested in March 2014 and has been on bail since 2016. SEBI says that Roy has deposited over 150 billion rupees so far.

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However, Sahara group has once again dismissed SEBI's demand and said in a statement that they have "mischievously" levied 15% interest and it is a case of double payment as the companies have already paid back the investors. Subrata Roy who once owned an airline, formula one team, cricket team, plush hotels in London and New York, and financing companies - all at once - recently featured in the Netflix series Bad Boy Billionaires.

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