CORRECTED - Supreme Court sets terms for Sahara chief's release from jail

(Corrects to say Sahara has to pay 360 billion rupees, not 30 billion rupees, in the second paragraph)

MUMBAI (Reuters) - The Supreme Court on Friday set fresh terms for releasing troubled conglomerate Sahara's founder Subrata Roy, jailed for more than a year in a long-running dispute over issuance of illegal bonds.

The court said Sahara, which has assets ranging from a Formula One team to TV channels, will have to pay 360 billion rupees in nine instalments after Roy's release from jail.

Roy will also have to submit his passport to the court after his release on bail, the court said.

Roy was arrested in March last year after the company failed to comply with a court order to refund money it had raised from millions of small investors by selling them bonds later ruled to

be illegal.

The court on Friday said Sahara owes as much as 360 billion rupees ($5.7 billion) to the bond investors. Sahara previously said it had repaid 95 percent of the amount due to the investors.

($1 = 63.7500 rupees)

(Reporting by Sankalp Phartiyal and Suchitra Mohanty; Writing; by Sumeet Chatterjee; Editing by Biju Dwarakanath)