(Eds: With additional details)New Delhi, Oct 12 (PTI) The Supreme Court today tookstrong exception to the Sahara Group allegedly obstructing theauctioning process of Aamby Valley and warned that anybodyindulging in such an act would be held liable for contempt and"sent to jail".
The apex court was irked when SEBI claimed that the grouphad allegedly obstructed the process by writing a letterto the Pune police raising the issue of law and order at theprime property.
Taking note of SEBI's allegation in this regard, a benchheaded by Justice Dipak Misra said the group should not haveentered into a communication with Pune's Superintendent of thePolice (Rural) on the issue since the auction has been orderedby the top court.
"If any impediment is caused in the auctioning process byanyone, he shall be liable of contempt of this court and sentto jail," the bench, also comprising Justices Ranjan Gogoi andA K Sikri, said. The punishment for contempt is up to sixmonths of simple imprisonment.
Later however, the apex court clarified that it was notinitiating any contempt action at this stage.
Regarding SEBI's allegation that the police has takencustody of the property due to which no bidder was willing totake part in the auction process, the bench directed theDirector General of Police, Maharashtra, to see that theproperty is handed over to the Bombay High Court's officialliquidator within 48 hours.
"You go ahead with the auction," the bench said.
Senior advocate Arvind Datar, appearing for Securitiesand Exchange Board of India (SEBI), told the bench that theSeptember 28 communication, addressed by the group to the Punepolice regarding law and order situation at Aamby valley, hasstalled the ongoing auction process.
SEBI also said the letter was also sent to the additionalchief secretary and no bidder was coming forward to bid forthe property as the police, while taking note of the letter,has taken its custody.
Meanwhile, senior advocate Mukul Rohatgi, representingthe group, objected to these submissions, saying "completelywrong statements are made to prejudice the court".
"No bidder has come...I (group) am not standing in theway. I have not halted anything and have not given property tothe police," he said.
However, the bench asked the official liquidator to goahead with the auctioning process under the direct supervisionof the company judge.
It also said the official liquidator shall take guidancefrom Justice A S Oka, sitting judge of the Bombay High Court,in the matter.
The bench said Justice Oka and the company judge shallwork in harmony so that the auctioning process goes onsmoothly.
The top court was hearing the SEBI's plea seekingcontempt action against the Sahara group for allegedlyobstructing the auctioning process of Aamby Valley.
In its plea, the SEBI has alleged "wilful and deliberateattempt" on Sahara's part "by adopting a subterfuge to causeinterference with the administration of justice, especially ina court directed and monitored auction sale of the AambyValley property under various orders of the apex court."On August 10, the apex court had rejected Sahara chiefSubrata Roy's plea to put on hold the auction process.
It had said that the auction process would proceed as perschedule and if Rs 1,500 crore is paid by Roy in the SEBI-Sahara refund account by September 7, then it may pass anappropriate order.
The Sahara Group had earlier sought 18 months time torepay around Rs 9,000 crore balance of the principal amount ofRs 24,000 crore.
Roy, who has spent almost two years in jail, has been onparole since May 6 last year. The parole was granted the firsttime to enable him attend the funeral of his mother. It hasbeen extended since then.
Besides Roy, two other directors -- Ravi Shankar Dubeyand Ashok Roy Choudhary -- were arrested for failure of thegroup's two companies -- Sahara India Real Estate Corporation(SIRECL) and Sahara Housing Investment Corp Ltd (SHICL) -- tocomply with the court's August 31, 2012 order to return Rs24,000 crore to their investors. PTI ABA MNL SJK RKSARC.
This is unedited, unformatted feed from the Press Trust of India wire.