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SC gives Sahara 18 months to pay up Rs. 36,000 crore

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New Delhi: The Supreme court on Friday gave 18 months to Sahara to repay Rs. 36, 000 crore of the investors’ money which its two companies, SIRECL and SHFCL, had collected in 2007-08 through OFCDs.

However, an apex court bench headed by Justice T. S. Thakur reiterated a March 26, 2014 order saying that Sahara chief Subrata Roy and two directors will only be released from Tihar jail, where they are in judicial custody, after Rs.5,000 crore in cash and a bank guarantee of like amount is deposited.

The court also approved the format of the bank guarantee given to it by Sahara.

The court said that Sahara will deposit the Rs. 36, 000 crore in instalments of Rs. 3, 000 crore every two months and the balance amount will be deposited in the last instalment.

In case Sahara defaults in paying two instalments, which may not be consecutive, SEBI will then encash the bank guarantee of Rs. 5, 000 crore, the court added.

If Sahara defaults on the payment of three instalments, which may not necessarily be consecutive, then Subrata Roy and two directors will surrender before Tihar jail authorities, failing which the police will arrest them, the court said.

The court has said that Roy will deposit his passport within 15 days before his release, will not leave the country and will also inform the police about his whereabouts.

However, the possibility of Subrata Roy coming out of jail has diminished as Kapil Sibal, appearing for him, informed the court that the financial institution backing the bank guarantee has withdrawn. He said that they will be arranging a fresh bank guarantee, for which efforts are on. (IANS)

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Madhya Pradesh Waives off $5.3Bn in Farm Debt

The western state of Maharashtra and northern state of Uttar Pradesh, both ruled by the BJP, announced similar loan waivers last year.

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India, farmers, farm
Farmers march towards the parliament house during a rally to protest soaring farm operating costs and plunging prices of their produce, in New Delhi, India. VOA

The new leader of the Indian state of Madhya Pradesh is to waive up to $5.3 billion of farm loans, becoming the latest area to offer relief ahead of a national election next year as farmers reel from losses caused by falling crop prices.

Prime Minister Narendra Modi’s Hindu nationalist Bharatiya Janata Party lost the central state to Congress last week dealing Modi his biggest defeat since he took office in 2014 and boosting the opposition ahead of the vote next year.

Congress leader Kamal Nath, who became chief minister of the state on Monday, decided to write off farmers’ loans up to 200,000 rupees, according to a notification.

farmers, Bank
Police try to stop farmers during a protest demanding a better price for their produce on the outskirts of New Delhi, India. VOA

Protests on the rise

Farmers’ protests have been rising in past months due to the fall in crop prices and a rise in the cost of diesel and fertilizer.

Nearly 3.4 million farmers will benefit from the loan waiver, which is likely to cost between 350 billion rupees ($4.9 billion) to 380 billion rupees ($5.3 billion), Rajesh Rajora, the state’s principal secretary for agriculture, told Reuters.

Also Read: Arvind Kejriwal Accuses Modi Government of Betraying Farmers

The western state of Maharashtra and northern state of Uttar Pradesh, both ruled by the BJP, announced similar loan waivers last year. (VOA)