SC declines plea to keep Roy under house arrest

Sahara had pleaded for house arrest of the Subrata Roy

The Supreme Court on Wednesday again declined Sahara chief Subrata Roy’s plea that he be released from Tihar central jail here and kept under house arrest. Roy had said this would help him arrange for Rs 10,000 crore, as sought by the court for his release.

Ram Jethmalani, senior counsel for Sahara, said some international parties were willing to bail Roy out. But “who will meet him in a jail”, he asked.

The prison was meant to accommodate 500 convicts but now, it housed more than 1,500, he said, adding this situation was affecting Roy’s ability to negotiate.

He said the summer vacation was approaching and no foreign party would be willing to go to jail to talk to Roy, adding keeping the Sahara chief in jail was destroying his credibility. Jethmalani reiterated his request to keep Roy under house arrest, saying Roy wasn’t someone who would “abscond”.

A few Sahara counsels asked the court to allow home-cooked food for Roy, to which the judges didn’t respond.

Another counsel for the group said Roy was allowed only three phone calls of three minutes each a day, adding this should be relaxed. The judges rejected this plea, too.

The judges, K S Radhakrishnan and J S Khehar, clarified Roy wasn’t in jail after conviction or as punishment. “He is under our custody. It is judicial custody,” they said, adding they would consider what Jethmalani had said.

Arvind Datar, the Securities and Exchange Board of India counsel, said the court had the power to keep Roy in jail before a full trial and conviction.

This was a unique case, he said, adding Roy had violated the court’s order to repay investors and despite 17 hearings, hadn’t changed his stance. Therefore, the court had the power to take interim measures “to push him, break his will”, Datar said, citing foreign judgments in similar situations. Rebutting the argument that Sahara housing companies had no money to pay, Datar said according to the companies’ statements in the appellate tribunal, they had property worth Rs 69,000 crore.

One website claimed their aggregate worth was about Rs 1,52,500 crore.

“They have the means to pay and if they were sincere, they could have paid at least a part of...But they have not paid anything except Rs 5,200 crore so far. They claim all dues have been paid,” he argued.

The court will take up the matter again on April 16.
NO RESPITE
Sahara’s lawyers argued

• Some international parties were willing to bail Roy out. But “who will meet him in a jail?”
• The prison was meant to accommodate 500 convicts but now, it housed more than 1,500, affecting Roy’s ability to negotiate
• Keeping the Sahara chief in jail was destroying his credibility

Sebi’s counsel argued

• According to Sahara’s statements in the appellate tribunal, they had property worth Rs 69,000 crore
• The court had the power to take interim measures “to push him, break his will”

ORDER

• Rejects Sahara’s proposal to release Subrata Roy from jail and keep him under house arrest