Non-bailable warrant against Subrata Roy cancelled after he appears in court

SEBI has cancelled the non-bailable warrant it issued against Sahara founder Subrata Roy.

The non-bailable warrant issued against Sahara founder Subrata Roy was cancelled on Friday after he presented himself in special SEBI court in Mumbai.

Roy had approached High Court to cancel the NBW issued on March 31 and was asked to produce himself before the designated court.

Roy was released on a personal bond in the court of Sessions Judge Shahida Razvi. Bail was given on the condition that Roy will be present for the hearings, unless he gives appropriate reason for not being present.

The warrant was issued in a criminal prosecution case filed by SEBI against Subrata Roy and the directors of two companies - Sahara India Real Estate Corporation and Sahara Housing Investment Corporation -- before special SEBI court in Mumbai. The case was registered for violating SEBI provision under section 24 and a chargesheet in the case was filed in 2012.

The next hearing in the case is scheduled for May 18, where argument on framing of charges will take place.

A total of five people are accused in the case in which Roy is the promoter, three others are directors and fifth is the company. The accused collected close to Rs 17,400 crores from 3 crore investors subscribing to optionally fully convertible debentures (OFCDs), along with 15 per cent interest, without listing the company in a recognised stock exchange.

On August 31, 2012, Supreme Court had directed Sahara group companies to refund close to Rs 17,400 crore that was mobilised from three crore investors. Special Public Prosecutor, Dr Poornima Advani had informed the court that there had been delays in the case and that charges should be framed at the earliest.

Roy's Lawyer Ashok Sarogi had told India Today, "We have just got the chargesheet. We will go through it and then decide whether we want to argue on the framing of chargesheet or we want to go for discharge."