Zee Media Bureau
New Delhi: The Supreme Court on Friday rejected Sahara Group's proposal to return debenture money to investors, stating that the proposal is not proper.
The court said, "The proposal is not proper and you must come out with honourable proposal."
The company had proposed to deposit Rs 2,500 crore within three days and rest of the amount in instalments after every three months.
Sahara Group had also pleaded today that Roy and other two directors be released from custody to raise the amount. The apex court will hear Roy's bail plea on Tuesday. Roy will remain in judicial custody till then.
The court, has however, allowed Sahara's financial consultants and lawyers to meet Roy in jail between 10 AM and 12 noon everyday.
Agreeing to assemble the special bench today to hear Sahara's plea, the Supreme court had said that the first instalment "looks attractive". However SEBI oppossed Sahara's proposal, saying the group intends to pay Rs 17,000 cr but the total due amount is Rs 37,000 cr.
The apex court had on March 4 asked the Sahara group to come up with a proposal to repay the money it owes to its investors.
Sahara had earlier in the day pleaded that Subrata Roy, two other directors be sent to police custody from judicial custody. The company has sought police custody for Roy and two others on ground that there were problems getting access to them in judicial custody.
On March 4, Sahara made a fresh proposal to bail out its Chief Subrata Roy but that did not go down well with the SC which rejected it saying the company failed to come out with any concrete proposal.
"We are not happy with the proposal. No concrete proposal has come up so far. We are not accepting this proposal. There is no bank guarantee", the SC had said.
"This (proposal) we are hearing for last one and half years. It is continuing since May 2012 what can we do.
"You and your companies have so much of money with you, then why don't you give it?," the bench further said.
The bench reminded the counsel appearing for Sahara about all its previous orders including the August 31, 2012 judgement and subsequent order of another bench of three judges which the Group has not complied with and made the refund of Rs 20,000 crore to the investors.
"Till today, we see no concrete proposal and no bank guarantee. Your theory that you have paid all investors can't be taken for granted," the bench had said.
With PTI Inputs
First Published: Friday, March 7, 2014, 11:10