Apex court issues arrest warrant against Roy

Non-bailable warrant asks for Sahara chief to be produced before court on March 4

The Supreme Court on Wednesday issued a non-bailable warrant against Sahara group promoter Subrata Roy after he failed to comply with its last week’s directions to appear personally. Roy should be arrested and produced on March 4, the court’s written order said.

“Since we have already declined to grant exemption from personal presence of the alleged contemnor number 5 on February 25, 2014, we find no reason to accede to the renewal of the request made today. Accordingly, we issue non-bailable warrants of arrest qua Mr Subrata Roy Sahara, the alleged contemnor number 5. He shall be arrested and produced before this Court on March 4, 2014, at 2.00 pm,” a Bench of judge K S Radhakrishnan and J S Khehar said in the order, posted on the Court website.

Two Sahara group companies, Sahara India Real Estate Corporation (SIRECL) and Sahara Housing Invest Corporation (SHICL) are contesting contempt proceedings initiated by the Securities and Exchange Board of India (Sebi), in connection with an August 2012 order of the Supreme Court.



The Court had directed the companies repay Sebi the Rs 24,029 crore it had collected in breach of law. The capital markets regulator was to, in turn, refund the money to individual depositors concerned. However, according to Sebi, Sahara paid only Rs 5,120 crore. The Sahara firms, on the other hand, have been claiming the remaining amount was refunded directly to investors.

On February 20, the court had rejected the claims of refund, insisted on payment of the remaining sum and directed personal presence of the alleged contemnors — Roy and the directors of SIRECL and SHICL — on February 26. The three directors — Ashok Roy Choudhary, Ravi Shankar Dubey and Vandana Bhargava — were present in the crowded court room on Wednesday. But Roy did not turn up, citing poor health of his mother, Chabi Roy.



Ram Jethmalani, counsel for the group, told the Court: “His mother is dying and he is required to be by her side, holding her hand.” He presented a medical certificate issued by Sahara Hospital to support the claim of poor health of Roy’s nonagenarian mother. He pleaded with the court not to be harsh on his client and sought an exemption on “humanitarian” grounds.

“You don’t require his presence today. The directors are here,” he added.

The Bench rejected Roy’s plea. Judge Radhakrishnan took exception to Roy’s absence and warned that “it was the Supreme court of the land” and that “the arms of this court are very long.” The court pointed out a similar request for exemption from appearance was turned down on Tuesday. “Today, when the matter is taken up, same request was made by Jethmalani, by moving an application, which was supported by a medical certificate. The said medical certificate was issued by Sahara Hospital and, in our view, the factual position indicated therein does not solicit the exemption sought,” the order said.

Sahara lawyers were hopeful there might not be an immediate arrest. “The warrant is to ensure that he is present in court on the March 4. If he refuses to come, he may be forced,” a Sahara group lawyer said after the hearing. The court was also not pleased with a fresh proposal from group companies, offering to pass “whatever” required to enable the sale of properties already pledged with Sebi.

The court directed that the three directors be present again on March 4.

COURTING TROUBLE

• Aug 31, ‘12: SC orders SIRECL and SHICL to deposit Rs 24,029, with 15% interest in three months
• Sep ‘12: Sahara starts sending trucks full of documents; no money
• Nov 26-30, ‘12: Group moves SAT and Supreme Court to deposit Rs 5,120-crore bank drafts as three-month deadline ends; claims remaining sum refunded directly to investors
• Dec 5, ‘12: Sahara moves CJI Altamas Kabir’s Bench; gets time till Feb 2013 for staggered payment
• Feb ‘13: Sebi passes attachment order as Sahara doesn’t pay
• May ‘13: SC orders tribunals, lower courts not to entertain petitions in the case, orders transfer of cases already filed
• Oct 29, ‘13: SC says Subrata Roy, directors can’t leave country if they don’t give property deeds to cover the remaining Rs 20,000 crore
• Nov 21, ‘13: SC orders grounding of Roy, freezing of group’s assets as Sebi finds discrepancies in title deeds given
• Dec 11, ‘13: SC asks group to explain the source of the so-called refunds
• Feb 20, ‘14: SC rejects arguments of premature refund; insists on payment, orders personal appearance of Subrata Roy
• Feb 26, ‘14: Roy doesn’t turn up; non-bailable warrant issued; to be arrested and produced on March 4