Sebi, the regulator of India’s markets, has directed Subrata Roy to pay Rs 626 billion ($ 8.43 billion) directly to the Supreme Court in a petition. If he does not do so, he is asked to cancel his parole.
According to a court filing seen by Bloomberg, the Securities and Exchange Board of India (SEBI) said it had Rs 626 billion, including interest outstanding on two companies of Sahara India Pariwar group and Roy, the head of the group. He was ordered to pay Rs 257 billion eight years ago but now his liability has increased after interest.
In 2012, the Supreme Court of India ruled that Sahara Group companies violated securities laws and illegally paid more than $ 3.5 billion. The comp anies raised money from millions of Indians who could not avail banking facilities. SEBI could not trace the investors and when the Sahara companies failed to pay, the court sent Roy to jail.
Sahara Group said in an email statement on Thursday that it was a completely wrong demand by SEBI. According to the statement, SEBI has ‘mischievously’ added 15% interest and it is a case of double payment as the companies have already paid the investors.
Roy’s case is featured in the Netflix series Bad Boy Billionaires. Asia’s third largest economy and business is based on stories of tycoons who failed to pay their dues. Roy was at one time the owner of airlines, Formula One teams, cricket teams, luxurious hotels and financial companies in London and New York, he has been in prison for over two years and is currently out on parole since 2016.
Sebi has said in the petition filed in the court that Roy has collected more than Rs 150 billion so far. The court has not yet decided when the next hearing of the case will be held.
Sahara claims, paid Rs 3,226 crore in 75 days