SC sets hefty conditions for Sahara chief's bail

[Hindustani78]

Updated: June 19, 2015 19:52 IST
Sahara case: no relief for Subrata Roy as SC lays hefty bail conditions - The Hindu

The judgment said once Mr. Roy is released on bail he has 18 months to repay his depositors his total liability of Rs. 36, 000 crore.
Spelling no immeditae relief for beleagured Sahara group chief Subrata Roy, the Supreme Court on Friday held that he cannot be released on bail until he pays Rs. 5,000 crore in cash and an equal amount in bank guarantees.

Mr. Roy has been in Tihar jail for over a year.

However, things touched ground zero for Mr. Roy when his counsel and senior advocate Kapil Sibal informing the court that the bank has "backed out" from giving the guarantee and there is no money currently for his release.

The three-judge Bench led by Justice T.S. Thakur said this judgment making his release conditional on payment of guarantee was drafted on the assurance given by Sahara that they had the bank guarantees ready. "Yes but the bank backed out after media reports came out on the proceedings," Mr. Sibal replied. The lawyer added that it would be difficult for Mr. Roy to pay up without first getting released from jail.

Justice A.K.Sikri, who authored the verdict, said the judgment has already been passed, indicating to Mr. Sibal that nothing can be done now until Sahara chooses to pay up. The judgment said once Mr. Roy is released on bail, whenever that is, he has 18 months to repay his depositors his total liability of Rs. 36, 000 crore.

The court said this payment should be made in the instalments of Rs. 3000 crore in every two months. Default of two months will land Mr. Roy back in jail. The court further refused Mr. Roy's application for parole, but agreed to extend conference room facilities for him inside Tihar for a period of eight weeks so that he can negotiate with prospective buyers and find money to pay for his bail.

Mr. Roy is in jail since March 2014 unable to pay Rs. 10,000 crore for his bail. The Bench while reserving the case for judgment in mid-May, had sought details on how the group proposes to proceed with the sale of its assets and payment to the SEBI.

The apex court on August 31, 2012 had said the group was required to refund Rs 24,000 crore with 15 per cent interest in three months to the depositors. It had on March 26, 2014 asked 65-year-old Roy to pay Rs 10,000 crore to get bail, out of which Rs 5,000 crore should be paid in cash and rest in bank guarantees.

During the last hearing, a battery of senior lawyers led by Kapil Sibal sought release of Roy from jail saying that he will be submitting a scheme on repayment in July and he can be sent back he defaults.

“As a goodwill gesture, please release him. Please give six weeks time to him and he be sent back to jail if he does not do the needful,” Sibal said, adding “keeping him in jail does not serve any body’s purpose”.

“Please do not feel that we are insensitive… and for last 16 months, we had been asking your client about the payment of money. This is not an ordinary case and its a case of its own kind. This man is in jail for the last 16 months…how do you ensure that money is recovered…,” the Bench had responded during the hearing.

The court had also earlier permitted Mr. Roy to use facilities like the conference room in Tihar jail complex to hold negotiations with potential buyers to sell his three luxury hotels–Dream Downtown and The Plaza in New York and Grosvenor House in London–to raise Rs 10,000 crore to get regular bail.

 

[Dubious]

Why is he in jail and that is some hefty fine!

 

[Jackdaws]

Why is he in jail and that is some hefty fine!

To cut a long story short - the man became a billionaire through something known as "chit funds" - these were collected in names of individuals who do not seem to exist - the entire firm is a front for laundering the money of politicians in UP.

 

[Dubious]

To cut a long story short - the man became a billionaire through something known as "chit funds" - these were collected in names of individuals who do not seem to exist - the entire firm is a front for laundering the money of politicians in UP.

and they left him to drawn? didnt even bother bailing him? That is nice our stupid corrupt bail each other

 

[Jackdaws]

and they left him to drawn? didnt even bother bailing him? That is nice our stupid corrupt bail each other

His bail is set at 5000 crore or something - our politicians would commit harakiri if they admitted having that kind of money. The ED and EC would intervene - all sorts of stuff will happen. The guy was laundering illicit money - it is not as if the politicians can admit to that.

 

[Dubious]

His bail is set at 5000 crore or something - our politicians would commit harakiri if they admitted having that kind of money. The ED and EC would intervene - all sorts of stuff will happen. The guy was laundering illicit money - it is not as if the politicians can admit to that.

Ohh our politicians either make the proof disappear or buy off the judge

 

[Hindustani78]

His bail is set at 5000 crore or something - our politicians would commit harakiri if they admitted having that kind of money. The ED and EC would intervene - all sorts of stuff will happen. The guy was laundering illicit money - it is not as if the politicians can admit to that.

The court had also earlier permitted Mr. Roy to use facilities like the conference room in Tihar jail complex to hold negotiations with potential buyers to sell his three luxury hotels–Dream Downtown and The Plaza in New York and Grosvenor House in London–to raise Rs 10,000 crore to get regular bail.

The Plaza Hotel in New York is just one landmark property Sahara Group


Grosvenor House Hotel,

 

[Hindustani78]

US court issues show-cause notice to Sahara in $350-mn lawsuit
New York, Jun 22, 2015, (PTI):

In fresh troubles for Sahara, a US court has issued show-cause notice to the group in connection with a USD 350 million lawsuit seeking attachment of its two prized hotel assets here -- Plaza and Dream Downtown.

The lawsuit has been filed by Hong Kong-based JTS Trading Ltd, which had proposed to partner UAE-based Trinity White City Ventures and arrange loans from Swiss banking giant UBS to acquire the crisis-ridden Indian group's three overseas hotels -- Grosvenor House in London and the two in New York.

In the lawsuit filed with the Supreme Court of the State of New York against Trinity, Sahara and UBS, JTS has now alleged that Trinity cut it off from the deal for direct negotiations with Sahara. JTS has also accused Sahara and UBS of having "aided and abetted" the UAE firm in breaching its "fiduciary duties" under their agreement.

Looking into the suit, the court has now passed an 'order to show cause', asking Sahara India Pariwar to show cause in the court on July 8 why "an order should not be made" for attaching the group's interest in the Plaza and Dream Downtown hotels in New York.

There were no reply to queries mailed to Trinity and JTS in this regard, while an UBS spokesperson said the bank had "no comment" to offer on this matter.

When contacted, a Sahara spokesperson said the group is not doing any business with Trinity.

As per the documents filed with the court by JTS, it had formed a venture with Trinity earlier this year to buy the three hotels from Sahara, which has been seeking to arrange funds to ensure release of its chief Subrata Roy and two other top executives from Tihar Jail in New Delhi.

Under the proposed arrangement, JTS was to invest USD 850 million for a 70 per cent stake in a private equity fund for the acquisition, while Trinity was to contribute USD 250 million for a 30 per cent stake. UBS was to provide senior debt facilities for the transaction.


JTS, which also claimed having been appointed 'exclusive arranger of fund', further said that the proposed 'Sahara portfolio' transaction was earlier pegged at USD 1.1 billion, but later it was revised upward to USD 1.5 billion.

JTS further alleged in the lawsuit that it was cut off from the transaction at a later stage and Trinity entered into direct negotiations with Sahara with the help of the Indian group as well as UBS.

"Plaintiff (JTS) has been denied its rights under the agreement as the intended 70 per cent owner of the general partnership, including but not limited to various management fees which cannot presently be determined but which are estimated would have been in excess of USD 350 million, as well as the anticipated increase in the value of the target properties," as per the suit.


Interestingly, Sahara group earlier this month announced that it has reached a deal with another party, Reuben Brothers, for transfer of its existing debt from Bank of China on the three hotels -- thus averting a 'default-triggered' sale of the iconic Grosvenor House hotel in London.

The Grosvenor House hotel was put on sale by its lender Bank of China earlier this year after a 'technical default'.

Sahara Group has been trying to raise funds to secure release of its Chairman Subrata Roy, who has been lodged in Tihar Jail for over a year, through monetisation of its various assets, including the three overseas hotels that it had purchased between 2010 and 2012 for USD 1.55 billion.

The group has been engaged in a legal battle with Indian markets regulator Sebi for a long time over a case involving raising of funds from investors to the tune of over Rs 24,000 crore. Sahara, however, claims it has already repaid 95 per cent of the investors money directly.

In the suit, JTS has alleged that Trinity and UBS "both acted intentionally and wilfully for the purpose of misappropriating for themselves opportunities and benefits justly belonging to Plaintiff".

It further said that it has "suffered actual damages, and is entitled to judgement against all defendants, in an amount which cannot presently be determined but is estimated to be no less than USD 350 million plus appropriate interest, and is entitled to punitive damages of USD 350 million from Trinity and UBS".

Among other pleas before the court, JTS has sought action "jointly and severally against defendants -- Trinity White City Ventures Limited, Sahara India Pariwar, Aamby Valley (Mauritius) Ltd and UBS Financial Services, Inc -- for actual damages which cannot presently be determined, but is presently estimated to be no less than USD 350,000,000, plus appropriate interest, and jointly and severally against Defendants -- Trinity White City Ventures Limited and UBS Financial Services, Inc for punitive damages of USD 350,000,000."

Last week, the Supreme Court of India set out conditions for release of Sahara chief Subrata Roy and other two executives from the jail and asked the group to make a total payment of Rs 36,000 crore in 18 months.

The court said that their release from jail was subject to deposit of Rs 5,000 crore in cash and Rs 5,000 crore in bank guarantee, as per an earlier court order, while the 18-month period would start from the date of his release after he fulfils the bail condition.

On release if Roy fails to adhere to meet the timeframe for depositing money or defaults in payment with the markets regulator Sebi, he will have to surrender to custody, the court further said.

Sibal said it was difficult to secure a bank guarantee of Rs 5,000 crore and wanted it to be reduced to Rs 4,000 crore.

The bench asked him to file an application in this regard and suggested that instead of Rs 5,000 crore in cash, Sahara should deposit Rs 6,000 crore in cash.

 

[Hindustani78]

Sahara asks US court to reject attachment plea for hotels
New York, Jul 12, 2015, (PTI)

Slapped with a USD 350 million lawsuit seeking attachment of its two prized hotels here, crisis-ridden Sahara has told a US court here that it has been wrongly dragged into a dispute between two entities over "a potential business relationship gone sour".

Seeking an immediate rejection of a plea by Hong Kong- based JTS Trading to attach Sahara's Plaza and Dream Downtown hotels here, the Indian conglomerate has submitted before the Supreme Court of the State of New York that the "plaintiff is attempting to attach property that falls outside of the jurisdiction of this Court."

"Even if the Court were to ignore the obvious jurisdictional deficiency, Plaintiff would not be entitled to the relief it seeks because it is seeking to attach the property of non-parties that are not implicated by the allegations in the complaint," Sahara said in a submission before the Court.

Sahara, along with two others, has been dragged into this USD 350 million (Rs 2,200 crore) lawsuit filed by JTS Trading Ltd, which had apparently proposed to partner UAE-based Trinity White City Ventures and arrange loans from Swiss banking giant UBS to acquire Sahara's three overseas hotels -- Grosvenor House in London and the two in the US.

In the lawsuit filed against Trinity, Sahara and UBS, JTS has alleged that Trinity cut it off from the deal for direct negotiations with Sahara. JTS has also accused Sahara and UBS of having "aided and abetted" the UAE firm in breaching its "fiduciary duties" under their agreement.
Looking into the suit, the court had last month passed an 'order to show cause', asking Sahara India Pariwar to show cause in the court why "an order should not be made" for attaching the group's interest in the Plaza and Dream Downtown hotels in New York.

In its submissions made before the court through its counsel here, Sahara has now said that JTS was seeking "to attach property owned by entities over which this court has no jurisdiction, and property owned by non-parties that are not accused of any wrongdoing, in the context of claims that are tenuous at best".

"The complaint and affidavits underlying the Order to Show Cause paint a picture of a dispute between JTS and Trinity White City Ventures Limited over a potential business relationship gone sour," it further said.

Sahara said it was true that A group entity Aamby Valley Mauritius had intermittent discussions in recent months with Trinity for a possible loan transaction, but there was no basis for JTS' allegations that Aamby Mauritius was aware of the nature of the relationship between JTS and Trinity, or of any alleged breach of fiduciary duty by Trinity owed to JTS.

JTS has also engaged a law firm in India "to carry out research, review and analysis" in relation to actions or proceedings being faced by Sahara Group under various laws, specifically Prevention of Money Laundering Act, Foreign Exchange Management Act as well as other legislations concerning regulation of financial markets in India.

Sahara also rejected the allegations that it was trying to "strip away the assets" of the two hotels.

It further said that Sahara entities will suffer harm if an order for attachment is issued, while adding that JTS was trying to block the group from engaging in any financial transaction in relation to the hotel properties by way of refinancing the existing loans or a sale of the properties.

Reacting to the lawsuit, Sahara Group had earlier said in a statement that "the lawsuit is brought against Trinity White City Ventures Ltd, which was apparently a potential joint venture partner of JTS Trading in a potential bid by Trinity to refinance our two hotels in New York and one in London."

"Sahara was at one time in discussions with Trinity but had no knowledge of the dealings between Trinity and JTS," the statement said.

"This is a private dispute between two parties who have had a falling out," Sandeep Wadhwa, Head of Corporate Finance at Sahara Group, had said in the statement.

"JTS' attempt to drag Sahara into this dispute is based on false allegations and we are confident that JTS's claim will not survive the preliminary stages of the proceedings. Sahara intends to defend the lawsuit vigorously," he added.

As per the documents filed with the court by JTS, it had formed a venture with Trinity earlier this year to buy the three hotels from Sahara, which has been seeking to arrange funds to ensure release of its chief Subrata Roy and two other top executives from Tihar Jail in New Delhi.

Sahara sources said this lawsuit will have no bearing on its fund-raising exercise as a deal is already in final stages with another investor.

JTS was to invest USD 850 million for a 70 per cent stake in a private equity fund for the acquisition, while Trinity was to contribute USD 250 million for a 30 per cent stake. UBS was to provide senior debt facilities for the transaction.

JTS, which also claimed having been appointed 'exclusive arranger of fund', further said that the proposed 'Sahara portfolio' transaction was earlier pegged at USD 1.1 billion, but later it was revised upwards to USD 1.5 billion.

Interestingly, Sahara group last month announced that it has reached a deal with another party, Reuben Brothers, for transfer of its existing debt from Bank of China on the three hotels -- thus averting a 'default-triggered' sale of the iconic Grosvenor House hotel in London.

The Grosvenor House hotel was put on sale by its lender Bank of China earlier this year after a 'technical default'.

Sahara Group has been trying to raise funds to secure release of its Chairman Subrata Roy, who has been lodged in Tihar Jail for over a year, through monetisation of its various assets, including the three overseas hotels that it had purchased between 2010 and 2012 for USD 1.55 billion.

The group has been engaged in a legal battle with markets regulator Sebi for a long time over a case involving raising of funds from investors to the tune of over Rs 24,000 crore.

Sahara, however, claims it has already repaid 95 per cent of the investors money directly.

 

[Hindustani78]

US court rejects plea for attachment of Sahara hotels

In a relief to Sahara, a US court has rejected a plea seeking to attach the Indian group's prized Plaza and Dream Downtown hotels here.
Hong Kong-based JTS Trading had approached the court seeking the attachment as part of its USD 350-million lawsuit against UAE-based Trinity White City Ventures, Sahara group and Swiss banking giant UBS over a deal that went sour.

While hearings will continue on the lawsuit, the Supreme Court of the State of New York has ordered that "the application of plaintiff JTS Trading Ltd for a pre-judgement order of attachment is denied".

Sahara, along with the two others, has been dragged into the lawsuit filed by JTS Trading, which claims that it had proposed to partner Trinity and arrange loans from UBS to acquire Sahara's three overseas hotels - Grosvenor House in London and the two in the US.

JTS has alleged that Trinity cut it off from the estimated USD 1.5 billion deal for direct negotiations with Sahara.

It accused Sahara and UBS of having "aided and abetted" the UAE firm in breaching its "fiduciary duties" under their agreement. JTS also filed an application before the court seeking a 'pre-judgement order of attachment' of Sahara group's interest in the two hotels in the US.

Seeking an immediate rejection of the attachment plea, Sahara submitted before the court that the "plaintiff is attempting to attach property that falls outside of the jurisdiction of this Court" and the assets did not belong to the parties of the case.

The Indian group also told court that it was wrongly dragged into the dispute between two entities -- JTS and Trinity -- over "a potential business relationship gone sour".

After looking into the oral and written submissions of JTS and Sahara in the matter, the court has now said in an order dated September 14 that "JTS fails to establish entitlement to attach assets of the non-parties".

"JTS' only claim in support of attaching non-party interests is that it is entitled to pierce the corporate veil to reach these assets," the court order said while adding that JTS however failed to establish an entitlement to pierce the corporate veil.

In its application, JTS had argued that Sahara India owns the Plaza and Dream Downtown hotels through a "convoluted chain of wholly owned and dominated alter-ego subsidiaries" and the group intended to sell these properties and repatriate the funds to India to use the money for securing release of the group's chief Subrata Roy from jail.

Sahara group however argued that JTS was seeking attachment of properties of 'non-parties' to the case against whom it had made no complaints. Among others, JTS has filed the case against Aamby Mauritius (an entity from the Sahara group) and Sahara India Pariwar.

Opposing JTS' plea, Sahara further said it did not "meet the standard required to pierce the corporate veil, as JTS can not demonstrate that any subsidiary was used in the commission of a wrong that harmed the plaintiff".

Agreeing to Sahara's arguments, the court also ruled that JTS has failed to establish the entitlement to piercing the corporate veil and rejected the attachment plea.

Reacting to the lawsuit, Sahara Group had earlier said in a statement that "the lawsuit is brought against Trinity White City Ventures Ltd, which was apparently a potential joint venture partner of JTS Trading in a potential bid by Trinity to refinance our two hotels in New York and one in London."

"Sahara was at one time in discussions with Trinity but had no knowledge of the dealings between Trinity and JTS," the statement said.

"This is a private dispute between two parties who have had a falling out," Sandeep Wadhwa, Head of Corporate Finance at Sahara Group, had said in the statement.

"JTS' attempt to drag Sahara into this dispute is based on false allegations and we are confident that JTS's claim will not survive the preliminary stages of the proceedings. Sahara intends to defend the lawsuit vigorously," he added.

Sahara sources said this lawsuit will have no bearing on its fund-raising exercise.
It last month announced that it has reached a deal with another party, Reuben Brothers, for transfer of its existing debt from Bank of China on the three hotels - thus averting a 'default-triggered' sale of the iconic Grosvenor House hotel in London.

The Grosvenor House hotel was put on sale by its lender Bank of China earlier this year after a 'technical default'.

Sahara Group has been trying to raise funds to secure release of its Chairman Subrata Roy, who has been lodged in Tihar Jail for over a year, through monetisation of its various assets, including the three overseas hotels that it had purchased between 2010 and 2012 for USD 1.55 billion.

The group has been engaged in a legal battle with markets regulator Sebi for a long time over a case involving raising of funds from investors to the tune of over Rs 24,000 crore.
Sahara, however, claims that it has already repaid 95 per cent of the investors money directly.

 

[Hindustani78]

http://www.deccanherald.com/content/583609/sc-asks-sahara-chief-deposit.html

New Delhi, Nov 28, 2016 (PTI)
The Supreme Court today asked Sahara Group chief Subrata Roy to deposit Rs 600 crore more by February 6 next year in the SEBI-Sahara refund account to remain out of jail and cautioned him that in case of failure, he would have to return to prison. A bench comprising Chief Justice T S Thakur and Justices Ranjan Gogoi and A K Sikri also said that it may consider appointing a "receiver" of properties if the group finds itself unable to sell them to pay back dues to the investors.

"If you (Sahara Group) are unable to sell properties, then the court would be comfortable to appoint a receiver," the bench said, adding it also did not want to keep a person in jail. The bench, initially, asked senior advocate Kapil Sibal, representing Roy, to deposit Rs 1,000 crore with market regulator SEBI in two months or it will appoint a receiver, but later reduced the money to be deposited to Rs 600 crore till February 6, 2017.

At the outset, Sibal said the group has deposited the money in pursuance of an earlier direction and filed a fresh re-payment plan to the court which asked senior advocate Arvind Datar, appearing for SEBI, and another senior advocate Shekhar Naphade, the amicus curiae, to file their response. The bench said the case, which is pending since 2012, has a "history" and asked SEBI and the amicus curiae to respond to the question as to whether the group is entitled to any further benefit in its re-payment schedule.

The group said that it has assets to the tune of Rs 1.87 lakh crore and "now you are unable to pay the dues", the bench observed and asked Sibal about the amount deposited by Roy after he came out of jail following the death of his mother. "I have deposited Rs 1,200 crore after that," Sibal said, adding, "Rs 11,000-odd crore has been deposited and around Rs 11,036 crore is remaining".

Sibal, however, said as per SEBI, the dues are to the tune of Rs 14,000 crore. Meanwhile, the bench said that the group may approach it for selling properties below 90 per cent of the circle rate.

At the fag end of hearing, the bench refused to entertain pleas of individual litigants, who have either invested in Sahara properties or in other schemes, to move civil court or appropriate forum with respective pleas. The bench made clear that it was concerned with the case at hand relating to repayment money to the investors.

Datar, appearing for SEBI, had earlier said that Sahara Group was liable to pay Rs 37,000 crore with interest to SEBI, of which the principal amount payable was Rs 24,000 crore. Till now, Sahara has paid Rs 10,918 crore out of Rs 24,029 crore raised from investors, he had said.

Earlier, Sahara Group had told the court that it would deposit Rs 200 crore, due on October 24, before time with SEBI in pursuance of an earlier order. The court had on September 28 asked Sahara to deposit another Rs 200 crore by October 24 while extending the interim order releasing Roy and two other directors on parole.

While extending the parole of Roy and two directors -- Ashok Roy Choudhary and Ravi Shankar Dubey -- till October 24, the bench had directed the group to deposit Rs 200 crore by then, failing which they will be sent to jail.

 

[Hindustani78]

http://www.deccanherald.com/content/591116/sc-refuses-give-subrata-roy.html
New Delhi, Jan 12, 2017, (PTI)

The Supreme Court on Thursday refused to grant extension of time to Sahara chief Subrata Roy to pay Rs. 600 crore by February 6.

The court observed that If Sahara Chief does not pay the amount by Feb 6, he should commit himself to jail.

The apex court also granted liberty to Sahara chief to transfer Rs 285 cr deposited in London Bank to SEBI.

Roy had cited demonetisation and economic slowdown for extension of time to pay Rs. 600 crore. But the court refused to extend time, saying that too much indulgence was already given more than any other litigant.

Details awaited

 

[Hindustani78]

http://www.hindustantimes.com/india...y-more-time/story-ZjnrknsJDmo9meNeCC44FJ.html

Rejecting Subrata Roy’s plea for more time to deposit Rs 600 crore with SEBI, the Supreme Court on Thursday said the Sahara Group chief would be sent to jail if the money is not paid by February 6.

A new bench led by Justice Dipak Misra noted that the court had given “too much of indulgence” to the Sahara boss.

The bench, comprising Justice Ranjan Gogoi and Justice AK Sikri, toughened its stand and warned that Sahara’s properties would be attached and auctioned in case of violation.

Sahara wanted more time to pay, and claimed that demonetisation had hit the real estate market badly. The company, it said, was finding it difficult to arrange the funds.

A statement released by Sahara after the court order said the company will now deposit the money as per its November order.

Roy was released on parole by SC in May last year, two years after he was jailed. He was given parole on compassionate grounds when his mother died.

On October 25, the top court had extended his parole after the company deposited Rs 200 crore with SEBI for repayment of investors. His parole and that of directors Ashok Roy Choudhary and Ravi S Dubey was subsequently extended on the condition they deposit money at regular intervals.

In November, the company had proposed a roadmap to repay the outstanding amount of Rs 11,136 crores to SEBI, as per which Sahara would take two-and-a-half years to pay up.

As per the roadmap, Roy and the two directors would be jailed again if there are three defaults.

 

[The_Showstopper]

Ohh our politicians either make the proof disappear or buy off the judge

Same happens here, he is just an odd find...

 

[Hindustani78]

Same happens here, he is just an odd find...

The apex court also granted liberty to Sahara chief to transfer Rs 285 cr deposited in London Bank to SEBI.