Supreme Court again rejects Sahara Group chief Subrata Roy's bail plea

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

An apex court bench of Justice T.S. Thakur and Justice A.K. Sikri on Wednesday 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 had in a August 31, 2012, order directed Sahara to return investors' Rs 24,000 crore, collected by two group companies - Sahara India Real Estate Corporation Limited (SIRECL) and Sahara Housing Investment Corporation Limited (SHICL) - through Optionally Fully Convertible Debentures (OFCDs).

It had on March 26, 2014, said the Group will deposit Rs 10,000 crore as part payment of investors' money as a condition for the release of Roy and two other directors currently in judicial custody since March 4.