New Delhi: The Supreme Court on Friday said the Sahara Group's proposal to pay the entire amount to SEBI in cash instalments of Rs.2,500 crore each at regular intervals of three months was not acceptable.
The apex court said: "You should bring a proposal which is acceptable and honourable. This is a dishonourable proposal."
Sahara Group Chairman Subrata Roy. Pic/AFP
The Sahara Group told the court in the morning that it will deposit Rs.19,000 crore of investor's money with the Securities and Exchange Board of India (SEBI) in cash instalments of Rs.2,500 crore each at regular intervals of three months, thereby extinguishing all outstanding claims by July 2015.
The apex court bench headed by Justice K.S. Radhakrishnan was told that the first instalment of Rs.2,500 crore will be paid within three working days after the restrain order on the operation of its accounts is lifted.
The court was also told that the Sahara Group may also be returned the titles deeds of its assets that it has submitted to the Securities and Exchange Board of India (SEBI).
Senior counsel C.A. Sundaram told the court that all the proceeds from the sale of these properties will be kept for returning money to SEBI.
Counsel for the market regulator, however, contested the amount and said that after calculating interest, the total outstanding claim on investors' money stands at Rs.37,000 crore.