Supreme Court

Subrata Roy ready to go to Jail if cheques dishonours. Reserve Price for Aamby Valley auction fixed at Rs. 37,392 Crores

Subrata Roy ready to go to Jail if cheques dishonours

Recently, Supreme Court had ordered auction of Sahara Aamby Valley and warned Subrata Roy to be present in the Court on 27th April, 2017 not to honour his affidavit or face wrath of Law.

On the scheduled day, in pursuance of the order dated 17.4.2017, the Official Liquidator of the Bombay High court filed the report of the Official Liquidator along with the executive summary in respect of the Aamby Valley City movable and immovable property in total amounting to Rs. 29,913 crores.(Distress Value in INR at 80% of Fair Market Value).

Mr. Kapil Sibal, senior counsel appearing for the contemnor, Subrata Roy Sahara, who was also present in person filed an affidavit of undertaking which was duly signed by Mr. Subrata Roy Shara. As per the said affidavit/undertaking, two cheques of Rs. 1500 Crores for the first instalment and Rs. 552.21 Crores for the second instalment both drawn in favour of SEBI were furnished. The Hon’ble Court was assured that the said cheques would be honoured and encashed in all circumstances, on presentation on the due date.

Subrata Roy ready to go to Jail if cheques dishonours

On being asked, the contemnor (Subrata Roy) submitted that it is his obligation to see that the cheques are encashed failing which he may be sent to custody. The Hon’ble Court was kind enough to accept the undertaking.

Reserve Price for Aamby Valley auction

The Hon’ble Court directed that the reserved price for the purpose of auction be fixed at Rs. 37,392 Crores. 

Imprisonment ordered for contempt of Court

In pursuance of the earlier order of the Court, for the reason of non deposit of a sum of Rs. 10,00,00,000/- (Rupees ten crore only), the power of attorney holder for M.G. Capital Holdings who was present was held to be guilty of violating the order passed by the Court. After having heard his explanation and being found not satisfactory, he was held guilty of contempt of the Court and convicted with a simple imprisonment for a terms of one month. 

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