You are in jail by choice: SC bench to Sahara chief

New Delhi, Aug 3

Jailed Sahara Group Chairman Subrata Roy's plea for his release on humanitarian grounds evoked a sharp reaction from the Supreme Court on Monday when it reprimanding the businessman for being in jail “by choice” for being unable to pay his bail money.

"One thing which is troublesome is that the person (Roy) says there is an asset of Rs 1,85,000 crore. He tells the court that he has so much of money but when it comes to paying one-fifth of that he is unable to pay. You have to pay only the one-fifth of your amount. A person blessed with so much money is sacrificing his liberty in jail and not parting with his property. You are in jail by choice," a bench headed by Justice TS Thakur observed and referred to his earlier submissions when Roy had claimed that the group has sufficient assets to pay the investors.

The remarks were made when senior advocate Kapil Sibal made a submission that the court should not immure Roy while contempt proceedings were still pending.

He also said that Roy’s company is struggling to raise the Rs 10,000 crore bail money and argued that he mist, instead, be released on humanitarian grounds.

However, the bench said: "Please appreciate we have certain constraints. Read the previous orders passed by this court.  You will know why your client is in jail. Read it you will not say. …Even if you are released, the sword will be hanging over your head on your return (from jail). You have to pay the remaining amount. This is a case which can be argued for days, weeks and months," the bench observed.

Sibal also argued that the court should allow Roy to negotiate with the potential buyers of properties within jail — a facility Roy, for now, has only until August 16.

The bench commented that it was evident that the group was unable to sell its properties to arrange for Rs 36,000 crore that it owes its investors, suggesting that the properties could be sold through a court-appointed receiver.

"Why can't a receiver be appointed? Let the properties be taken over and let it be sold and the money be deposited with the receiver as it is apparent they are incapable of generating money and selling properties," the bench said, adding that a retired judge of the apex court could oversee the receiver’s progress.

"These people can enforce agencies to proceed with the sale of property. It is not a happy situation," the bench, also comprising Justices AR Dave and AK Sikri said after approving the sale of Sahara Group's 140-acre land in Gorakhpur, which was settled for Rs 152 crore.

The money generated from the sale of Gorakhpur property would be added to SEBI-Sahara account and go towards securing Roy's release.

The bench will now hear the case on September 14, when it will hear the arguments for appointing a receiver.

Further, the court will deliberate on the dispute arising on the sale of property at Chauma in Gurgaon and Vaasai in Maharashtra.

Sahara has been struggling to raise Rs 10,000 crore — Rs 5,000 crore in cash and an equal sum in bank guarantee — to secure the release of the group’s chairman.

Roy, 67, must also pay Sebi Rs 36,0000 crore in 18 months of his release in nine installments — failing this, he will have to turn himself in again. — PTI