The Supreme Court on Wednesday told Sahara chief Subrata Roy that it has lost faith in him after the court discovered it was “taken for a ride” as 47 out of 70 properties offered by Sahara under auction had been attached with the Income Tax department.
The counsel for the Securities Exchange Board of India (SEBI) revealed this when the court sought details of the money raised by sale of Sahara properties.
The Sahara has deposited Rs10,718 crore so far with the SEBI. The Bench of Chief Justice TS Thakur, Justices AR Dave and AK Sikri wanted to know from senior advocate Kapil Sibal to inform them by October 24 on how Roy intended to pay the remaining outstanding amount of Rs12,000 crore.
Extending his parole till that day, the Bench also ordered Sahara chief to deposit a sum of Rs200 crore towards the refund account maintained by the SEBI to prove his bonafide for repayment of the sum.
Making things worse for Roy, the SEBI counsel senior advocate Arvind Datar told the court that out of 70 properties submitted by Sahara for auction, 47 cannot be sold as they faced attachment proceedings.
This came to light after eight properties cleared by Sahara as unencumbered were put up for sale under auction by the SEBI. Two of these properties fetched Rs61.44 crore. In case of the remaining six, after the completion of the auction, the SEBI discovered that these were attached with IT department.
The Bench remarked, “We feel we are being taken for a ride. This fact should have been stated by you (Roy) earlier. It was your duty to tell us they are subject to attachment. They should not have been offered for auction at all.”
Sibal sought time to check the facts with his client and assured that by the next date, Roy will submit a roadmap to clear all his outstanding amount that he owned to the SEBI. However, the court took this with a pinch of salt.
“This is not the first time your client is giving us a roadmap. Why is he still inside is because all roadmaps, undertakings given by him to this Court have been observed in breach. We allowed you all liberty, gave you permission to sell any property but you have not paid. There is no faith left in you,” the court said.
Sibal countered saying, “Allow me to sell in whatever manner I have to sell. Allow me to do what I have to do and whom to sell. Don’t put any conditions. I am ready to give an unconditional undertaking that I will pay back the entire amount within one and half years.”
Datar told the Court that the Sahara group owed an amount of Rs 37,000 crore of which the principal amount payable was Rs 24,000 crore. Till now Sahara has paid Rs 10,718 crore in cash and some amounts in cheque leaving a shortfall of over Rs 12,000 crore on the principal amount.