 "Subrata Roy liable for contempt, Sebi tells SC")
Sebi has moved contempt petitions against the companies, directors and Roy for allegedly willfully disobeying the orders of the Supreme Court orders to deposit Rs 24,029 crore along with an interest of 15%.
The Supreme Court heard the arguments of Sebi today with regard to contempt and role of Roy and adjourned the matter to August 6 for further arguments and defence.
Sebi counsel Arvind Datar told the court that the Sahara firms have clearly violated the court directions. “There could not be a clearer case of contempt. They asked for more time, then don’t comply, then they say that we have already paid and when this plea is dismissed, they again asked for more time which was also dismissed. It must be taken that the court has not accepted their plea. Non-payment of money amounts to contempt,” Datar said.
He added that the parties are in violation of section 2(c) read with Article 129. “They have compounded the contempt by frustrating the orders of Sebi dated February 13, 2013 and March 26, 2013.”
On Roy, Datar said the Sebi whole time member had issued show cause notice to him and had recorded specific findings against him in the June , 2011 order. “By virtue of being promoter of the companies and by virtue of the findings of the Sebi, Roy is in same footing as the directors of the company,” he said.
Roy, therefore, falls within the ambit of the term “officer in default” under the contempt proceedings, the Sebi counsel said.
He produced several filings with the Registrar of Companies including the red herring prospectus of the optionally fully convertible debentures issue in which Roy was named the promoter of Sahara India Real estate with 70% holdings. Elsewhere, in a filing he was referred to as an individual with a “significant influence.”
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