SC no to Subrata Roy's foreign trip, asks Sebi's view

Asks the regulator to file its response this week and it'll be taken up next week along with the contempt petition

The Supreme Court on Thursday declined the request of Sahara Group chief Subrata Roy to go abroad, but asked the Securities and Exchange Board of India (SEBI) to respond to his request by next week.

The court also asked Sebi to state on January 9 whether it had received adequate security for the refund of the amounts collected from investors through bonds. The group said it had submitted title deeds of properties worth Rs 20,000 crore to Sebi.

Senior Counsel for Roy, C A Sundaram, submitted to a bench headed by Justice K S Radhakrishnan that Roy had a lot of business interests and commitments abroad, and also had appointments with several leading personalities in the US and England. He further said that Roy was willing to give an undertaking that he would return within three days if the court wanted him here.

The court asked Sebi counsel Pratap Venugopal to file Sebi’s response this week and the application would be taken up next week along with the contempt petition moved by Sebi against two Sahara companies, which collected over Rs 24,000 crore from the public.

The court had asked the companies to return the money to the investors, but the group has disputed the amounts and has insisted that it had paid Rs 5,000 crore to Sebi which can return them to genuine investors. The rest of the amount is disputed.

The court was hearing the contempt of court petition for several months and last month, it prohibited sale or other transactions with regard to the assets of the group. It has also barred Roy and two top executives from leaving the country. The new application is the second time Roy has sought permission to go abroad.