Parrikar 'disturbed' at Subrata Roy's long incarceration

Goa Chief Minister Manohar Parrikar Tuesday used the plight of Sahara group chief Subrata Roy to illustrate his reservation against codification of privileges of parliamentarians and legislators.

Parrikar, speaking at the concluding session of the 16th All India Whips Conference at a south Goa resort, said that he was "slightly disturbed" at the manner in which Roy was put behind bars by the apex court for a long duration for judicial contempt.

"While I support everything, I have my own reservations about your codification. Why... I will tell you. For how many months has the Supreme Court thrown Subroto Roy in jail? For a democrat like me, I am slightly disturbed. I do not understand the strong gravity of that," Parrikar said.

"I have read Krishna Iyer's (former SC judge V.R. Krishna Iyer) judgment... he says... that a person cannot be kept inside without proper process. The only process probably there (in Roy's case) is Supreme Court's contempt of court. Has parliament questioned that and summoned the person to answer. So how do you allow assembly or parliament's privilege to be questioned (by) the judiciary," Parrikar argued, while expressing his reservation for codification of process.

Roy has been incarcerated at Delhi's Tihar Jail for nearly six months for contempt of court after he repeatedly failed to appear at apex court hearings in connection with a case involving security regulators vis-à-vis $4 billion convertible bond issue.

The Goa chief minister contended that if judicial contempt is beyond parliamentary control, its reverse should also be true.

Over 100 lawmakers attending the conference have recommended that codification of privileges should be considered by each legislative body in the state to remove uncertainty and with a view to address the anxieties of the people and the press.

4,600 Sahara investors claim refund from Sebi

Around 4,600 investors in two Sahara group companies have come forward to claim refunds from the Securities and Exchange Board of India (Sebi), which had asked those who had purchased bonds issued by the entities to claim their money. Sources familiar with the development told TOI that the average claim is to the tune of Rs 20,000, resulting in a total demand of under Rs 10 crore.

The low demand will bolster Sahara's argument before courts that it had repaid most of the investors who had come forward to claim the investment they had made in bonds issued by two group companies — Sahara India Real Estate Corp (SIRECL) and Sahara Housing Investment Corp (SHICL).

In August, Sebi had asked investors to submit refund applications with documentary proof by September 30. The regulator has begun the process of issuing refunds, the sources said.

Sebi and Sahara have been involved in a bitter battle over the past few years, related to alleged irregular fund-raising to the tune of Rs 24,000 crore from three crore investors.

Sahara has maintained that it has cleared over 90% of the outstanding amount and paid directly to the bondholders, and the remaining amount added up to around Rs 2,500 crore. Following SC orders, it had deposited Rs 5,120 crore to Sebi in December 2012, while another Rs 3,100 crore was deposited this June.

Sahara chief Subrata Roy has been in Tihar Jail for the past six months after the company failed to raise the Rs 10,000 crore required to secure the bail, which the court is insisting on to repay investors.

The company has tried to sell and mortgage its iconic hotel properties in the US and UK but the efforts are yet to bear fruit. Roy was given permission to use a temporary facility in the jail premises to pursue sale of the hotels but has now been ordered to return to barracks.

Sebi had earlier sought to get the list of investors but made little headway as a truckload of documents reached its Mumbai office. It had also tried to contact investors directly earlier as well but got few responses.

Reference link: http://timesofindia.indiatimes.com/business/india-business/4600-Sahara-investors-claim-refund-from-Sebi/articleshow/44765138.cms

Subrata Roy Sahara: Legal debate over Roy’s detention gathers pace

It's been over six months that Subrata Roy, the flamboyant chief of Sahara, has been in Delhi's Tihar jail. In the meantime, the hopes of his release have risen and ebbed. And as the days go by, it is becoming uncertain when he will be able to furnish Rs 10,000 crore to Sebi — a pre-condition set by the Supreme Court for his release. 

Company sources say that it's not that the company doesn't have the money. The issue is Roy's current predicament. "The entire world knows that he's being forced to make distress sales to raise this amount and so he is getting badly discounted offers for his valuable overseas properties. Now, which businessman wants to sell his jewels at throwaway prices," said a company executive. 

Roy's case — and along with him that of two other Sahara directors, Ashok Roy Choudhury and R S Dubey — has few parallels. Technically, Rs 10,000 crore is not a bail amount; bail was granted to him five months ago, but it came with the pre-condition of him paying Rs 10,000 crore for his release. Legal experts say this is an extraordinary pre-condition. 

There is also lack of clarity about the charges that have been slapped against Roy and the two Sahara directors. If it is contempt of court — Roy refused to appear before the Supreme Court on the given date citing his mother's illness — he has already served the maximum punishment of six months prescribed for the offence. 

"The question to be debated is whether there is a reasonable limit for how long someone can be incarcerated under the present circumstances — or if the six-month limit prescribed under the Contempt of Courts Act applies here," said Gopal Sankaranarayanan, senior advocate, Supreme Court. 

Article 21 of the Constitution deals with an individual's personal liberty. It states, "No person shall be deprived of his life or personal liberty except according to procedure established by law." 

Some feel that this Article is being violated. Abhishek Manu Singhvi said, "Although currently I am not arguing the case, in my professional opinion, the continued incarceration may well be held to be a violation of his right to life under Article 21 (of Constitution of India) and a fit ground for a curative petition." 

These legal points aside, it is now clear that Roy — about whom company executives say was not an original respondent in this case — will have to pay the amount as ordered by the Supreme Court. The question is whether he should be kept in prison until he coughs up with Rs 10,000 crore, or should he be released with due safeguards, allowed to negotiate the best terms for sale of assets, and told to pay the amount within a set deadline. 

Roy has been in Tihar jail, under judicial custody, since March 4 this year. In early August, Roy was given a 10 working days to negotiate sale or lease of Sahara group's hotel properties to raise the Rs 10,000-crore bail amount. According to people within the group, he has been making 'relentless efforts to sell the properties' in order to meet the criterion set forth by the apex court, 'which shows his bonafide intention to comply with the orders passed by the court'.

Reference Link: http://timesofindia.indiatimes.com/business/india-business/Legal-debate-over-Roys-detention-gathers-pace/articleshow/44661645.cms