SC rejects Sahara's proposal; Roy to remain in judicial custody

Sahara had proposed to pay investors' money in cash installments of Rs 2,500 cr

The Supreme Court on Friday decline to accept 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.

The apex court said: "You should bring a proposal which is acceptable and honourable. This is a dishonourable proposal."

SC said that it will hear Sahara's plea for police custody of Roy and others on Tuesday. This means that the Sahara chief will stay in judicial custody till then.

The apex court, however, allowed Sahara's financial consultants and lawyers to meet Roy in jail between 10 am and 12 noon everyday.

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.

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.