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Sahara Group's chief Subrata Roy arrested in Lucknow; claims he surrendered
Subrata Roy Shara, the founder and chairman of the Sahara India Pariwar was contonuosuly in news because of the Sahara-SEBI story. And as a further development in this story, Subrata Roy has been arrested today by the Lucknow police on the directions of Supreme Court. However, the Sahara Group has claimed that Roy has surrendered before the police on his own.

The apex court had issued a non-bailable arrest warrant against the Sahara chief for his non-appearance in court, despite a summon issued by the court.

Now Roy is in police custody and also pleaded the court to take up his matter today. But, his plea was turned down as the judge said it was not possible for the special bench to assemble today. He also signed a two page statement, saying 'he was not absconding and was ready to "unconditionally follow" Supreme Court's direction'. Roy also appealed the SC to allow him to be with his 92-year old ailing mother, under house arrest till 3 March 2014.

Notably the market regulator Securities and Exchange Board of India (SEBI) had asked Sahara to refund around 20,000 crores to the investors but Sahara failed to do so.

The entire case involving Sahara had started on 2011, when SEBI restricted the promoters and directors of Sahara group of companies from raising any capital through the issue of securities. But then, Lucknow bench of Allahabad High Court stayed the SEBI's order. And as per the order the SC turned down SEBI's plea to stop the two Sahara firms from raising money from the investors.

But, after this SEBI issued a notice on its website stating investors not to buy debentures of Sahara. And for this act of SEBI, the Sahara India Real Estates sent a legal notice to SEBI and accused them for defaming the company.

After this whole incident, the SC gave Sahara Group of companies two choices, i.e. either to secure the investments made by the public in the scheme or to give sufficient bank guarantee or attach properties worth the amount, and gave them a three weeks duration to choose between the two.

Finally the decision came in favour of SEBI, and it ordered the Sahara companies to return its OFCD investors the full outstanding amount with interest. But Sahara Group filed a review petition on it and claimed that it has submitted the required documents to SEBI in the stipulated time limit (10 days), but SEBI did not accept the documents while stating that the documents have arrived on the 10th day.

The Sahara Group got a temporary reprieve from Supreme Court as it granted more time to repay the money, but Sahara missed the repayment deadline set by the court and SC refused to hear a plea asking for extension of deadline, as reported by DNA.

Then in 2013, SEBI asked to attach the properties of the group and group's chief. In March last year, Sahara approached special appellate tribunal against SEBI's move to attach its properties. Finally, the apex court barred Subrata Roy from leaving India.




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