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Not even a cup of tea was offered to me: Subrata Roy

Source: PTI
April 10, 2013 17:57 IST
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Subrata RoySahara chief Subrata Roy rued on Wednesday that he was not even offered a cup of tea during his hour-long appearance before market regulator Sebi.

"We have given more than Rs 5,000 crore (Rs 50 billion) to Securities and Exchange Board of India (for refund to investors).

Additionally, we have to bear all the other expenses, but in this one hour they did not even offer tea," Roy told waiting reporters after his personal appearance at the Sebi headquarters in Mumbai.

Roy and three other top executives of Sahara group were summoned by Sebi this afternoon to ascertain details of their personal and the two Sahara firms' assets which can be sold to generate funds for refund to investors.

A chaotic scene was seen outside the Sebi headquarters as large number of media persons had gathered to report Roy's appearance before the market regulator.

Sebi has been asked by the Supreme Court to facilitate refund of over Rs 24,000 crore (Rs 240 billion) to more than three crore (30 million) bond holders of Sahara India Real Estate Corp Ltd and Sahara Housing Investment Corp Ltd.

Sahara group claims that it has directly paid back most of the investors and the total outstanding liability is less than Rs 5,120 crore (Rs 51.2 billion) already given to Sebi towards refund.

Roy said he was asked by Sebi about his personal assets, but they would be puzzled after getting to know about it.

"Including gold ornaments and stones, all is Rs 3 crore (Rs 30 million).

Cash and bank is Rs 34 lakhs (Rs 3.4 million) and fixed deposits is Rs 1.59 crore (Rs 15.9 million).

And for buying sugar mills at Badauli, I had taken an advance of Rs 11 crore (Rs 110 million). My immovable property is nil," he claimed.

"In this world, you can neither prove a right person wrong, nor something wrong can be proved right," Roy said.

Sahara chief accused Sebi of delaying the refund and said that the regulator was not doing anything to pay back the investors.

He said that Sebi was rather indulging in ‘media trial and other things’.

"I told them (Sebi) about my concerns about those who are yet to get the money. . . In the last seven months, you have not taken any initiative wherein the money can be distributed to the investors.

"Not just that, you have also not taken any efforts to verify (the investor details) as well," Roy said.

Sahara chief said that Sebi has alluded towards the investor accounts being fictitious, "but unless you verify the accounts, how will you know?

"I've requested them to start the verification, but I don't know what will happen going ahead," Roy said.

As per the Supreme Court order, Sahara has to bear all the expenses incurred by Sebi in connection with the refund process. Sebi has already incurred expenses to the tune of Rs 55 crore (Rs 550 million) in this case and the final bill is expected to be much higher.

Image: Subrata Roy

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