The Securities and Exchange Board of India (Sebi) on Tuesday made a forceful plea to the Supreme Court to punish Sahara chief Subrata Roy, along with his two firms and their directors, for not complying with its order for refunding Rs 24,000 crore to investors.
Roy had submitted that he cannot be penalised for non-refund of the money by Sahara India Real Estate Corp Ltd and Sahara India Housing Investment Corp Ltd.
Sebi said Roy held 70% stake in the companies and was therefore liable for contempt of court, a punishable offence.
“By virtue of being promoter of the companies, he holds the same position as that of directors of the companies and he is also liable for contempt. He is liable for punishment along with other directors of the companies,” senior advocate Arvind Dattar told a bench of justices K S Radhakrishnan and J S Khehar.
Sebi had contended that the companies have not complied with apex court orders on refund passed on August 31 and December 5 last year.
Dattar sought maximum punishment for Roy and others under Section 12 of Contempt of Court Act, which provides for up to six months in jail and a fine.
“There can not be a clearer case of contempt. Non-payment of funds amounts to contempt,” he said, adding, the companies have violated not one but three orders of the apex court.