Market regulator Securities and Exchange Board of India (SEBI) has petitioned the Supreme Court to direct business tycoon Subrata Roy to pay Rs 626 billion immediately to stay out of the jail or cancel his parole if he doesn’t yield.
The watchdog said that the outstanding liability of the two companies of Sahara India Parivar group and its chief Subrata Roy stands at Rs 626 billion which includes interest, according to court filings. The liabilities of Roy have ballooned from Rs 257 billion when he was ordered to pay the amount eight years ago.
In 2012, the Supreme Court ruled that the companies of Sahara group violated securities laws and illegally raised over $3.5 billion. The group’s companies said monies were raised in the form of cash from millions of Indians who could not avail banking facilities. SEBI could not trace the investors and when the firms failed to pay up, the court sent Roy to jail.
On Thursday, Sahara group in an emailed statement said, “It is absolutely wrong demand by SEBI”. SEBI has “mischievously” added 15 per cent interest and it is a case of double payment as the companies have already paid back the amount of investors, according to the statement. So far, Roy has deposited over Rs 150 billion, said SEBI in a court filing. The court has yet not decided when will be the case heard next.