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Subrata Roy seeks discharge from Mumbai court in SEBI case

Press Trust of India  |  Mumbai 

Sahara group chief Subrata Roy today moved a city here seeking his discharge from a case filed by the Securities and Exchange Board of (SEBI). "Hearing is likely on June 7," his lawyer Ashok Sarogi said. Roy was not present in the today as he was unwell, Sarogi added. Market watchdog had filed a case against Sahara Real Estate Corporation (SIREC) and Sahara Housing Investment (SHI) along with their promoter Subrata Roy and three directors in 2012, alleging that the firms collected money from investors without listing the securities on stock exchanges. Advocate Sarogi said that the discharge plea filed by SIREC and SHI contended that they have already faced prosecution in and there can't be a second prosecution for the same offence, which would amount to what is known as 'double jeopardy' and which is prohibited by the Constitution. "If the company cannot be prosecuted then (it follows) its directors cannot be prosecuted," Sarogi said. On April 21, the had cancelled non-bailable warrants issued against Roy and three directors of Sahara group firms after they appeared before the in the case. According to the SEBI, these companies issued Optional Fully Convertible Debentures for the public in 2009 under the garb of private placement which violated the Act, as the companies have to list such securities on the stock exchanges which they did not do. The complaint did not specify the amount collected from investors, but it is estimated to be around Rs 24,000 crore.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Thu, May 18 2017. 20:14 IST