New Delhi: In another blow to Sahara Group, the Supreme Court rejected its proposal for refunding investors money. The irked court asked the group to draft an “honourable” proposal.
The Sahara Group submitted that it was ready to make a cash payment of Rs 2,500 crore within three days and gave an assurance that it will pay the rest of Rs 14,900 crore in five instalments by the end of July 2015. The special bench rejected the proposal after Sebi opposed it on the grounds that the Group is supposed to pay Rs 34,000 crore and not just Rs 17,400 crore which it agreed to pay.
“It is not a proper proposal and the proposal should be honourable,” the bench said.
“You make us assemble (sitting of the special bench) and then you are saying that you won’t be able to pay the money. It is a big insult to us. It is not proper in my view. You should not make us assemble, if you don’t have a proper proposal to make,” Justice Khehar said.
Senior advocate C.A. Sundaram, who was accompanied by other senior lawyers, tried to convince the court that it is not possible at this stage to raise more money as the key person, Mr Roy, is behind bars and his people have no access to him in judicial custody.
“The one person who can find money is not in a position to do it. He is the only one who can arrange money. He can work out if he is allowed to get out. We are also not allowed to access him,” the advocate pleaded.
Considering the arguments of Mr Roy’s counsels’ the bench said, “For the last one and half years, he (Mr Roy) has been out and he has been behind only for the last few days,” the bench said, adding “We can arrange meetings but you must pay the amount”.
The bench then ordered that financial consultants and lawyers of Mr Roy will be allowed to meet him between 10 and 12 am every day. Another senior advocate Ravi Shankar Prasad claimed that not a single investor had filed any complaint against the Group and the court should also consider that it is also a matter of livelihood for 14 lakh Sahara employees.
The bench then shot back saying “is there any real investor”.
