Sahara India chief Subrata Roy moves Supreme Court against Patna HC order
11-05-2022
The HC directions were issued on various anticipatory bail applications filed in cheating cases committed by non-banking finance companies (NBFCs). quite 600 applications are pending for the discharge of the matured amount by the Sahara company.
Sahara India chief Subrata Roy on Tuesday moved the Supreme Court against the Patna High Court’s order that asked him to be personally present before it on May 12 to elucidate his plan for payment of matured deposits to the tiny investors of his group companies.
The matter couldn't be preoccupied for hearing on Tuesday joined of the SC judges refused from hearing citing personal difficulty. The case is probably going to be mentioned for an urgent hearing on Wednesday.
“…by way of last chance, the Sahara Group and other companies, who are taking … deposits till about one month back, are directed to come back with an idea for the return of the investment of the investors, and for that, Sri Subrata Roy, is directed to look personally during this court..,” the HC said.
The HC had earlier directed the Sahara company to elucidate how the hard-earned money of poor investors deposited in several schemes of the Sahara Company may be returned. Sahara Credit Cooperative Society had told the HC that it doesn't have funds to refund the investors and would be ready to do so provided that the Securities and Exchange Board of India (Sebi) release its money.
The HC directions were issued on various anticipatory bail applications filed in cheating cases committed by non-banking finance companies (NBFCs). quite 600 applications are pending for the discharge of the matured amount by the Sahara company.
Roy told the SC that the HC couldn't have used its powers under Section 438 CrPC to “virtually convert the anticipatory bail proceedings into an omnibus exercise for recovering disputed dues and resolving alleged claims of fraud and cheating involving the general public at large in Bihar.”
“It is discernible that the HC also noted some aspects of cheating by Nidhi companies and delved into the aspect of grievance redressal qua Nidhi companies; and thus, the scope of … an anticipatory bail petition was further enlarged to such an extent that even Nidhi companies were brought within the purview of an application under Section 438 CrPC,” he said in his appeal filed through counsel Gautam Awasthi.
He said that Roy had been added as a celebration within the purported capacity of being the director in Sahara Group of Companies, which is factually incorrect as all group companies were separate legal entities and being managed by their respective board of directors. “Roy or the Sahara Group had no nexus with the first complaint and none of the accusations was even remotely relatable to them,” the appeal stated. Despite that, the HC had issued a summoning order within the “most arbitrary manner,” it added.
While the HC had also issued directions to RBI for creating awareness regarding the functioning of Nidhi companies and also directed registration of a PIL within the alleged fraud by these companies, it had also impleaded Sebi, RoC (Bihar), Ministry of Corporate Affairs, Department of Economic office, etc in these proceedings.
