Zee Media Bureau
New Delhi: The Supreme Court on Friday termed the Sahara group's proposal to repay its investors over a period of 16 months as an 'insult' and asked the company to come up with an 'honourable' proposal.
Under the condition, the apex court said the group chief Subrata Roy will remain in Tihar jail until the next hearing scheduled for Tuesday.
With its chief arrested and kept at Tihar Jail, Sahara group came under pressure and Friday offered to pay its investors over a period of 16 months. However, the Supreme Court rejected the move and called it an 'insult'.
The Sahara group had also asked for assembling the special judges to hear the matter where it put forward the proposal but did not provide a proper proposal.
"It's an insult to us," the SC observed.
In the proposal the group submitted that it was ready to make a cash payment of Rs 2,500 cr within three days while assuring that it would pay the remaining Rs 14,900 in five installments by the end of July 2015.
However, a bench of justices K S Radhakrishnan and J S Khehar rejected the proposal after SEBI also opposed it on the ground that group is supposed to pay Rs 34,000 crore and not just Rs 17,400 crore which it agreed to pay on Friday.
"It is not a proper proposal and the proposal should be honourable," the bench said.
"You make us assemble (sitting of the special bench) and then you are saying that you won't be able to pay the money. It is a big insult to us. It is not proper in my view. You should not make us assemble if you don't have a proper proposal to make," Justice Khehar said.
With Agency Inputs
First Published: Friday, March 07, 2014, 21:32