India's Supreme Court extends Sahara chief Subrata Roy's parole by a week

Subrata Roy was first arrested in March 2014 after Sahara, a household name in India, failed to comply with a court order to refund money raised from millions of small investors by selling them bonds later ruled to be illegal. Photograph:( AFP )

WION New Delhi, Delhi, India Sep 23, 2016, 01.33 PM (IST)
India’s Supreme Court, which had earlier today ordered Sahara chief Subrata Roy to be taken into custody till October 3, decided to extend his parole by a week.

A two-judge bench headed by chief justice Tirath Singh Thakur passed the order after hearing an application filed by Kapil Sibal, the lawyer appearing for Roy, reported ANI.

Roy was first arrested in March 2014 after Sahara, a household name in India, failed to comply with a court order to refund 360 billion Rupees ($5.4 billion) raised from millions of small investors by selling them bonds later ruled to be illegal.

Roy was released from prison on parole in May and the hearing on Friday was to determine whether it should be extended.

Earlier in the day, agency reports said that the Supreme Court had cancelled all interim relief including bail granted to Roy and two others and directed they be taken into custody.

The apex court had on September 16 extended Roy's parole till September 23.

The decision, earlier on Friday, to not grant a further extension was made after national markets regulator, the Securities and Exchange Board of India (SEBI), told the court it was unable to raise money from Sahara properties as they had been requisitioned by the income tax department against unpaid dues.

SEBI on Friday also made an application in court to appoint a receiver to handle Sahara's properties.

(WION with inputs from agencies)