A special bench headed by Justice T S Thakur asked the government to talk to jail authority to explore the venue but made it clear that the arrangement would be done only for holding negotiations and not for giving any comfort to Roy who has been in jail for nearly five months.
The bench asked the government, which said arrangement can be made in the guest house or court room inside jail, to respond by July 30.
Roy submitted that prospective buyers want him to be present during all negotiations and said that he will also need computer and Internet connection.
The apex court on Tuesday had refused to release Roy, who has been behind bars for nearly five months, on interim bail or parole but had allowed selling of his luxury hotels in New York and London to raise money to deposit Rs 10,000 crore with SEBI as directed to get regular bail.