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Sahara Allowed to Raise Loan for Subrata Roy's Bail

The Supreme Court has set conditions on the fund raising, however, and on Friday asked Sahara to obtain necessary approvals from the Reserve Bank of India and other authorities to comply with foreign exchange rules.
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A file photo of Sahara chief Subrata Roy
A file photo of Sahara chief Subrata Roy

The Supreme Court has cleared the way for embattled conglomerate Sahara to raise fresh loans totalling $1.05 billion using its overseas hotels, helping the group to fund the bail payment needed to release its jailed boss.

The Supreme Court has set conditions on the fund raising, however, and on Friday asked Sahara to obtain necessary approvals from the Reserve Bank of India and other authorities to comply with foreign exchange rules.

Ruling on Sahara's plea, the court also permitted the group's chairman Subrata Roy to use a makeshift office inside the jail premises, with facilities such as phones and computers, from January 12 to February 20.



Sahara chairman Subrata Roy has been held at Delhi's Tihar Jail for more than 10 months after he failed to appear at a contempt hearing in the long-running dispute with the capital markets watchdog Sebi (Securities and Exchange Board of India) over the company's failure to repay crores to investors who were sold outlawed bonds.

He is yet to be charged over the dispute and denies any wrongdoing.

Last year, Mr Roy was allowed by the Supreme Court to talk to potential bidders for three hotels, including Grosvenor House in London and the New York Plaza, to raise Rs 10,000 crore for bail.

Mr Roy was given an office with 600 sq ft of space inside New Delhi's Tihar jail complex, so that he could hold video conferences, use computers and receive visitors to sell or mortgage the hotels.



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