Supreme Court says no to Subrata Roy’s New Year break plea

NEW DELHI: The Supreme Court on Wednesday refused to release Sahara chief Subrata Roy for two months during the Christmas and New Year break while the group sought to raise funds to meet the Rs 10,000 crore bail amount set for release from Tihar jail. It, however, allowed the group to transfer its first mortgage to another entity and create a second mortgage on its three hotels abroad to help it raise the much-needed funds.

The bench also hinted that it may lift a freeze on bank accounts and assets to permit the group to recommence businesses.

“Employees have not been paid for three to four months,” Sahara lead lawyer S Ganesh argued, seeking the court’s nod to lift the freeze imposed over the group’s inability to clear its court-ordered dues. “Our businesses are struggling to survive. They may go under.”

“Ordinary commercial transactions have been crippled,” he said. “All accounts are frozen. We have to ensure the survival of these companies. There are receivables. How can we carry on business?”

“The intention is not to crush your business as long as it is lawful. Business must go on,” the bench comprising justices TS Thakur, Anil R Dave and AK Sikri said, minutes after it had refused a plea by senior advocate Rajeev Dhavan to release Roy on “compassionate grounds”.

Justice Thakur expressed concern over the fact that Roy has been in jail for months but rejected the plea to free Roy.