SC Allows Sahara to Raise Loans from Abroad

India’s Supreme Court allowed Sahara Group to go ahead with its proposed loan transaction from abroad for raising funds to ensure release of Subrata Roy from jail.

A three-judge bench asked the Sahara group to approach the Reserve Bank of India to get a clarification whether any foreign exchange laws and regulations would be violated if the money is brought into the country.

Sahara told the court that this money would cover the balance of the cash Rs.5,000 crore and a bank guarantee for the same amount required for the release of Roy and the two directors from Tihar jail where they have been held since March.

Now, Sahara Group will have to seek permission from RBI for transfer of money to India from abroad. The apex court also extended conference facility for Roy in Tihar jail to deal with the nitty-gritty of transactions.

The apex court had earlier allowed Roy to use the conference room in Tihar jail complex to hold negotiations with potential buyers for selling the hotels in New York and London.

Roy, who was sent to jail on March 4 last year for non- refund of over Rs 20,000 crore with interest to depositors, was asked by the court to pay Rs 10,000 crore to get bail, out of which Rs 5,000 crore should be paid in cash and rest of the amount in bank guarantee.