SC bars Subrata Roy from leaving India, bans sale of Sahara properties

The development comes a day after market regulator Securities and Exchange Board of India (Sebi) told the Supreme Court that Sahara had overvalued its properties and did not hand over all original title deeds of assets worth Rs20,0000000000 as per its direction.

The Supreme Court has barredSahara Group chief Subrata Roy from leaving the country and also forbid the group from selling any of its properties. Three Sahara directors have also been restrained from leaving the country. A Supreme Court bench comprising Justices KS Radhakrishnan and JS Khehar on Thursday said Sahara could not sell any of its movable or immovable properties until it complied with an October 28 court order asking it to give property title documents to Sebi. The documentswere meant to be collateral for the 20,0000000000 that the group has to refund depositors. "Our order of handing over title deeds of Rs 20,0000000000 to SEBI has not been followed by Sahara in letter and spirit, the apex court said. The bench made it clear that the restraining order was applicable to all companies of the Sahara Group, and that they would get a hearing only after they have complied with the court order in letter and spirit. "It is important for Sahara to understand. We can see our order has not been complied with. First you deposit title deeds and then we will hear you. Till you don't comply with our orders, there is no question of granting you a hearing," the bench told Sahara's counsel CA Sundaram. The development comes a day after market regulator Securities and Exchange Board of India (Sebi) told the Supreme Court that Sahara had overvalued its properties and did not handover all original title deeds of assets worth Rs 20,0000000000 as per its direction. "It is a mockery of our order if it has been complied with in this way," the court had said on Wednesday and posted the case for hearing today after Sahara sought adjournment on the ground of non- availability of its counsel. The case pertains to two Sahara Group firms- Sahara India Real Estate Corp Limited (SIREC) and Sahara India Housing Investment Corp Limited (SHIC) raising around Rs 24,0000000000 through optionally fully convertible debentures (OFCDs) in violation of public issue norms. The Supreme Court on November 1 allowed Sahara Chief Subrata Roy and two other directors to travel abroad, but said if the property title deeds worth 20,0000000000 are not submitted to Sebi in three weeks Roy has to come back to India. Sahara Group had filed an application seeking to rectify the alleged error in the order which barred group's head Subrata Roy and its two directors from going abroad till they submit original title deeds of their assets worth Rs 20,0000000000 to Sebi to cover investors' money. Agencies