Subrata Roy seeks discharge in SEBI case

Sahara group chief Subrata Roy on Thursday moved court seeking his discharge in a case filed by the Securities and Exchange Board of India (SEBI). Mr. Roy was not present in court as he was unwell, his lawyer Ashok Sarogi said, and presented a medical certificate citing gastroenteritis. Judge M.G. Deshpande rejected the application and directed his doctor to be present in court on June 7. Market watchdog SEBI had filed a case against Sahara India Real Estate Corporation (SIREC) and Sahara Housing Investment (SHI) along with their promoter Subrata Roy and three directors in 2012, alleging the firms collected money from investors without listing the securities on stock exchanges. Mr. Sarogi said the discharge plea filed by SIREC and SHI contended that they have already faced prosecution in Lucknow and there can’t be a second prosecution for the same offence, which would amount to what is known as ’double jeopardy’ and prohibited by the Constitution. On April 21, the court had cancelled non-bailable warrants issued against Mr. Roy and three directors of Sahara group firms after they appeared before the court in the case. According to the SEBI, these companies issued Optional Fully Convertible Debentures for the public in 2009 under the garb of private placement which violated the SEBI Act, as the companies have to list such securities on the stock exchanges which they did not do. The complaint did not specify the amount collected from investors, but it is estimated to be around ₹24,0000000000.