Zee Media Bureau
New Delhi: Sahara Chief Subrata Roy, and two of his directors, have been sent to judicial custody to be produced on March 11 before the bench, the Supreme Court said on Tuesday in connection with a contempt case against the company relating to non-payment of Rs 20,000 crore to investors.
The apex court has allowed Roy to seek preponement of hearing if a concrete and acceptable proposal can be offered in the meantime.
"We have found that the contemnors maintained an unreasonable stand throughout the proceedings before SEBI, SAT, high court and even before this court," the Supreme Court said.
"Preservation of market integrity is extremely important for economic growth of this country and for national interest," SC said.
"We are not happy with the proposal of Sahara chairman on refund of money. They have not come up with concrete proposal, bank guarantee." the apex court said.
The apex court told Roy, "You can't make payment in cash as it is contrary to law. You have to make payment through demand draft or cheque."
"Market abuse is a serious financial crime which undermines the very financial structure of this country," it said.
"Non-compliance of the orders passed by this court shakes the very foundation of our judicial system and undermines the rule of law," it said.
"Bhargava allowed to be in touch with Roy, two directors for working out acceptable proposal so that appropriate orders can be passed," SC said.
The Supreme Court earlier accepted the unconditional apology tendered by Sahara chief Subrata Roy for not appearing before it last Wednesday.
During the hearing, Roy also assured the apex court that its order will be followed by him and sought more time for refunding money to investors.
"I have full faith in you. Punish me if I don't comply with your order," Roy told the highest court.
SC accepted Roy's apology but rapped the Sahara Group chairman for not abiding by its order and taking contradictory stand on payment of investors' money.
"You pushed us to the corner. Had you been serious, this position would not have arrived,” the apex court told Roy.
Accepting Roy's apology, the apex court said, "We respected you; you failed to respect us."
Earlier, a protester threw ink on Sahara Group chairman Subrata Roy as he reached the Supreme Court today to appear in a contempt case arising out of non refund of Rs 20,000 crore to investors.
The attacker, who was later identified as Manoj Sharma, managed to get close to Roy despite a heavy police presence and then threw ink on him. Sharma, a lawyer by profession, hails from Gwalior and has now been detained.
Sahara chief was last night taken by road to New Delhi for production before the apex court.
Roy surrendered last week on Friday after that he was formally arrested by the UP police which he had evaded for two days.
The Supreme Court had ordered his arrest after he failed to appear before the court in a contempt case for non-appearance before it.
The Sahara chief was lodged in a guest house of the state forest department at Kukrail in Lucknow after the UP police was directed by a local court on February 28 to keep him in custody till March 4 when he will be produced before the Supreme Court.
Chief Judicial Magistrate Anand Kumar Yadav had directed the UP police to keep him in custody till 2 PM on March 4 and ensure that he is by then produced before the apex court.
Police had moved an application before the CJM seeking Roy's custody instead of transit remand and his counsel V K Shahi also did not oppose it.
The order to arrest Roy was issued on February 26 for his failure to appear before the apex court in a contempt case arising out of non refund of Rs 20,000 crore to investors by two of his companies.
With agency inputs
First Published: Tuesday, March 4, 2014, 08:17