Sahara chief to remain in jail as SC lifts freeze on assets

Sahara group chief Subrata Roy will remain in jail even as the Supreme Court Wednesday lifted the freeze on the group's moveable and immovable assets so it could raise Rs.10,000 crore for part repayment to investors.

The apex court March 26, 2014 had said Sahara Group will deposit Rs.10,000 crore as part payment of investors' Rs.24,000 crore that its two companies - Sahara India Real Estate Corporation Limited (SIRECL) and Sahara Housing Investment Corporation Limited (SHICL) - had collected through Optionally Fully Convertible Debentures (OFCD) as a condition for the release of Roy and two other directors currently in judicial custody since March 4.

An apex court bench of Justice T.S. Thakur and Justice A.K. Sikri allowed Sahara to encash its fixed deposits, bonds and securities and the money so generated will be deposited in an account opened by market regulator Securities and Exchange Board of India (SEBI).

The court also allowed Sahara to sell its properties located in nine cities to generate the balance Rs.5,000 crore that it has to pay SEBI in cash.

The court also allowed Sahara to mortgage its Aambey Valley property to raise a bank guarantee of Rs.5,000 crore.

The Supreme Court, by its Aug 31, 2012 order, had directed Sahara to return investors' Rs.24,000 crore, collected by SIRECL and SHICL through OSCDs.