SC allows Sahara to raise loan to fund Subrata Roy's bail

The Supreme Court cleared the way for Sahara Group, the embattled conglomerate, to raise fresh loans totalling US $1.05 billion using its overseas hotels, to fund the bail payment needed to release its jailed chief Subrata Roy.

The apex court has set conditions on the fund raising, however, and on Friday asked Sahara to obtain necessary approvals from the Reserve Bank of India and other authorities to comply with foreign exchange rules.

Ruling on Sahara's plea, the SC also permitted the group's chairman Subrata Roy to use a makeshift office inside the jail premises, with facilities such as phones and computers, from January 12 to February 20.

(Reuters)