SEBI seeks instructions from Supreme Court for taking custody of Sahara chief Subrata Roy

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The Securities and Exchange Board of India (SEBI) has sought directions from the Supreme Court to take Subrata Roy Sahara into custody for his alleged failure to return money to investors. SEBI demanded Rs 626 billion from Sahara, which is collected from investors. SEBI has filed a petition in the Supreme Court. Sebi has asked the petition to direct Sahara Group Chairman Subrata Roy and his two companies to deposit Rs 626 billion ($ 8.4 billion). This money is owed to its investors.


Sebi says that Sahara chief Subrata Roy will have to pay Rs 626 billion to escape from jail. Sebi said in the Supreme Court that Sahara failed to comply with the court's order of 2012 and 2015 of depositing the entire amount taken from its investors with 15 percent annual interest.


Sahara has to pay this amount to investors who put their money in a bond scheme, which was later deemed illegal. Sahara Group President Subrata Roy was arrested in March 2014 for failing to appear for contempt of court hearings and has been on bail since 2016.


SEBI said that the regulator has suffered a lot due to non-compliance by Sahara for more than eight years. Sebi told the court, 'Sahara has made no effort to follow orders and instructions. On the other hand, the liability is increasing daily and they are enjoying being free from custody. '