Supreme Court hints at lifting embargo on accounts, for Roy release

NEW DELHI: The Supreme Court on monday hinted at lifting a court imposed embargo on operating its bank accounts and assets to permit Sahara to generate Rs 5000 crore in cash and another Rs 5000 crore by way of bank guarantee to secure the release of chairman Subroto Roy, but rejected a plea to order his release before any payments.

The bench also rejected a plea for placing Roy under house arrest in either Lucknow or Mumbai, the Sahara headquarters, till that amount was paid. "This stalemate helps no one, not the depositor. Make a finite proposal, which is logically acceptable," the bench said, before listing the issue again for deliberations next week. Roy is stuck in tihar jail till then.

The new bench comprising justices T S Thakur and A K Sikri, almost passed the order, but at the last minute sought a precise, logical proposal to raise the Rs 10,000 crore for Roy's release.

Sahara offered to pay Rs 3000 crore lying in its accounts within five to seven days of lifting of the freeze on its accounts. It also offered to sell some Amby Valley properties to raise the rest Rs 2000 crore and secure the Rs 5000 crore bank guarantee.

But the bench wanted sahara to sell only one property to raise Rs 2000 crore by way of cash to add to the Rs 3000 crore held in its accounts. The court wanted Sahara to secure the Rs 5000 crore bank guarantee by mortgaging its properties. The bench the deferred passing any orders for a week. Sahara had offered to sell Amby Valley properties in Pune, Ahmedabad and Bahraich to raise Rs 11000 crore odd.

"We have letters of intent for this," senior advocate Rajeev dhavan, appearing for two other jailed directors, said. The bench then sought details of these letters of intent.