New Delhi: The Supreme Court on Wednesday rejected the plea for shifting of jailed Sahara chief Subrata Roy to a guest house but allowed the group to sell properties to mobilise Rs 5,000 crore in cash and an equal amount in bank guarantee for securing his release.
The bench modified earlier restraint orders over bank deposits and sale of immovable assets saying "this did not pose any difficulty, as the same is in aid of compliance with the directions of this court."
The court, in its 27 page verdict, said it has reservations in relaxing bail conditions as the contemnors, including the 65-year-old Sahara chief, who is in jail since March 4, had adopted "dilatory tactics" to avoid compliance of earlier orders.
"The prayer for modification of the terms stipulated in our order dated March 26, 2014 granting interim bail to the contemnors is declined and the Interim Applications to that extent is dismissed.
"Prayer for shifting the contemnors to a guest house for continued custody and detention till they comply with the directions of this Court for their release on interim bail is also declined...," a bench of justices T S Thakur and A K Sikri said.
"Second set of prayers is for grant of bail or relaxation of jail conditions in the interregnum. Here, we have our reservations. We are not inclined to modify order dated March 26, granting interim bail to the contemnors upon conditions stipulated in the said order.
The bench observed that it said so because the background in which the contemnors came to be committed to the jail and the finding recorded by the Court that they have at all earlier stages tried to adopt dilatory tactics.
Their avoiding complying with the orders passed by the Court did not in their view call for any modification of the terms on which the contemnors can be released, the bench noted.
"FDs, bonds and securities held by Sahara Group of companies may be encashed by the holders thereof subject to the condition that the maturity value/sale consideration of such FDs, bonds and securities shall be deposited in the designated bank account of SEBI referred to in the earlier part of this order and details of such maturity values and sale consideration furnished to this Court on affidavit to be filed within four weeks from the date the FDs, bonds and securities are encashed, sold and/or transferred," it said.
The bench also permitted the Sahara group to sell immovable properties, worth around Rs 2,500 crore, situated in nine cities here.
It also said that "such sales are not for a price lower than the estimated value indicated in the statement filed before this Court or the circle rates fixed for the area in which such properties are situated.
"The seller shall furnish to this Court the details of the valuation of the properties sold and the terms of sales together with a declaration that the purchasers is not a related party qua Saharas. Needless to say that upon deposit of the sale consideration the title deeds of the property shall be released by SEBI in favour of the purchaser(s)."
The bench said the sale consideration of the properties, after deducting the transaction cost and statutory dues, be deposited with SEBI "to the extent the same is necessary to make a total deposit of Rs.5,000 crores...".
"The balance/excess amount of the sale consideration shall be deposited by Saharas in a separate account to be opened in a nationalised bank which deposit shall remain subject to further orders of this court," it said.
The court said Sahara group is also permitted to mortgage its immovable properties at Aamby Valley in Pune for purposes of furnishing a bank guarantee of Rs 5,000 crores or for depositing of Rs 5,000 crores in case there is a shortfall in the cash payment.
The Sahara group, in a statement, said, "we are very thankful that today we got clearance of bank acounts and certain select properties.
Roy, who is in Delhi's Tihar jail, was earlier directed by the apex court to pay Rs 5,000 crore in cash and furnish a bank guarantee of Rs 5,000 crore as pre-condition for his release.
"We direct that the Bank guarantees to the tune of Rs 5000 crores shall be furnished from a nationalised bank or a scheduled bank only. Co-operative Bank Guarantees shall not suffice," the court said.
Dealing with the sale of Sahara's equities in three offshore hotels, it said, "the question is left open to be determined after the requisite documents/information is made available by Sahara in terms of our order dated May 29."
The court referred the matter to the Chief Justice for constitution of larger three-judge bench.
"...One very important order which is sought to be enforced in these proceedings was passed by a three-Judge Bench, we refer these proceedings to a three-Judge Bench to be constituted by the Chief Justice of India," it said.
It, meanwhile, appointed senior advocate F S Nariman as an amicus curiae to assist the court in the case and said that he will be given Rs 1.10 lakh fees per hearing and the money shall be paid by SEBI, which, in turn, will deduct it from the account of Sahara group.
The court said if Nariman accepts the proposal for appointment as amicus curiae, he will be at liberty to take help of junior lawyers and they will be given Rs 10,000 each per hearing.
It said the court orders can be modified only "under compelling circumstances and moreover, Sahara chief has to deposit the money to the tune of Rs 33,000 crores to Rs 35,000 crores.
"Apart from the fact that the prayer now made is a repetition of similar prayers made in the past which have not cut any ice with the bench hearing the matter, we see no reason to make a departure from the usual course in the present case. The Bench has passed a conditional bail order after due and proper consideration having regard to the attendant circumstances including conduct of the contemnors.
"The order can be modified only under very compelling circumstances. The only reason given by the applicants is that interim release or transfer of the contemnors to a guest house would enable them to dispose of the properties speedily and enable them to arrange for the requisite Bank Guarantees.
"We don't think so. It is noteworthy that the total amount to be deposited is between Rs. 33000/- to Rs. 35000/- crores."
It said that Roy and others have been asked to deposit less than one-third of that amount as a condition for bail to show their bonafides.
"After all, even when this part of the order is complied with and the contemnors are set free, they will have to arrange the deposit of the balance amount, which again is very substantial...The prayer for modification of the order, accordingly, fails," it said.
Roy, who was sent to jail for non-refund of over Rs 20,000 crore to depositors, was asked by the court to make a fresh proposal for paying Rs 10,000 crore to get bail.
