Sahara chief Subrata Roy arrested over 'illegal bond issuance' - Business News - Business - The Independent

Sahara chief Subrata Roy arrested over 'illegal bond issuance'

 

Asia correspondent

A colourful business tycoon considered India’s largest private employer and who has interests around the world, has been arrested amid allegations that his companies raised up to £2.3bn in illegal bonds.

Subrata Roy, who owns London’s Grosvenor House hotel and the Plaza hotel in New York, was detained by police after he gave himself up in the city of Lucknow, in Uttar Pradesh. He did so following an order the previous day from India’s highest court.

Mr Roy’s Sahara Group is worth an estimated £6.6bn and has interests in everything from housing, manufacturing to aviation. He sponsors a Formula One team and the Indian national hockey team. He previously owned a cricket team in the Indian Premier League.

Two Sahara firms are accused of raising £2.3bn through bonds that were found to be illegal. The companies have claimed they paid the money back to investors but the market regulator, the Securities and Exchange Board of India, says they have not.

The arrest of Mr Roy came after he failed to appear in court in Delhi this week. He claimed he was attending to his ill mother.

Yet, a report in the Lucknow edition of the Times of India newspaper showed him attending a high-profile wedding at the time he claimed his mother was in desperate need of his attention. Her doctor’s report came from a hospital owned by Mr Roy’s group.

At a press conference in Delhi on Friday morning, Mr Roy’s son, Seemanto, said his father had failed to appear simply because he wanted to stay with his mother, whose health was still fragile.

“For the consumption of all those associated directly or indirectly, nationally and globally, with us, we wish to reiterate the fact that Sahara has always put our beloved nation ahead of any business interest and have always have ensured compliance to the law of the land,” said Mr Roy’s son.

He also issued a statement from his father. It read: “With folded hands and all humility, I ask the honourable judges to leave me under house arrest with my ailing mother till March 3.”

Mr Roy said he could not handle the “agony and humiliation” and accused the media of indulging in bullying. He added: “My office, my colleagues, my family members are continuously getting calls from media friends, relatives. They want to hear from me. All I want to say is: This is the best honour my country could give me”.”

Mr Roy, 65, is expected to remain in custody until March 4 as the Supreme Court refused to take up his bail petition on Friday, saying it was not urgent.

News
Paper trail: the wedding photograph found in the rubble after 9/11 – it took Elizabeth Keefe 13 years to find the people in it
newsWho are the people in this photo? It took Elizabeth Stringer Keefe 13 years to find out
Arts and Entertainment
Evil eye: Douglas Adams in 'mad genius' pose
booksNew biography sheds light on comic genius of Douglas Adams
Sport
FootballFull debuts don't come much more stylish than those on show here
News
i100
PROMOTED VIDEO
Life and Style
Kim Kardashian drawn backlash over her sexy swimsuit selfie, called 'disgusting' and 'nasty'
fashionCritics say magazine only pays attention to fashion trends among rich, white women
Arts and Entertainment
TVShows like Agents of S.H.I.E.L.D are little more than marketing tools
Arts and Entertainment
Hit the roof: hot-tub cinema east London
architectureFrom pools to football pitches, rooftop living is looking up
Travel
travel
News
The ecological reconstruction of Ikrandraco avatar is shown in this illustration courtesy of Chuang Zhao. Scientists on September 11, 2014 announced the discovery of fossils in China of a type of flying reptile called a pterosaur that lived 120 millions years ago and so closely resembled those creatures from the 2009 film, Avatar that they named it after them.
SCIENCE
Life and Style
tech
News
ebooksAn unforgettable anthology of contemporary reportage
Arts and Entertainment
Matisse: The Cut-Outs exhibition attracted 562,000 visitors to the Tate Modern from April to September
art
Life and Style
Models walk the runway at the Tom Ford show during London Fashion Week Spring Summer 2015
fashionLondon Fashion Week 2014
News
Kenny G
news
News
peopleThe black actress has claimed police mistook her for a prostitute when she kissed her white husband
Life and Style
techIndian model comes with cricket scores baked in
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs Money & Business

SQL Developer - Watford/NW London - £280 - £320 p/d - 6 months

£280 - £320 per day: Ashdown Group: The Ashdown Group have been engaged by a l...

Senior BA - Insurance **URGENT**

£400 - £450 Per Day: Clearwater People Solutions Ltd: **URGENT CONTRACT ROLE**...

Training Coordinator / Resource Planner - City, London

£35000 - £38000 per annum + Benefits: Ashdown Group: Training Coordinator / Pl...

Data Governance Manager (Solvency II) – Contract – Up to £450 daily rate, 6 month (may go Permanent)

£400 - £450 Per Day: Clearwater People Solutions Ltd: We are currently looking...

Day In a Page

Mystery of the Ground Zero wedding photo

A shot in the dark

Mystery of the wedding photo from Ground Zero
His life, the universe and everything

His life, the universe and everything

New biography sheds light on comic genius of Douglas Adams
Save us from small screen superheroes

Save us from small screen superheroes

Shows like Agents of S.H.I.E.L.D are little more than marketing tools
Reach for the skies

Reach for the skies

From pools to football pitches, rooftop living is looking up
These are the 12 best hotel spas in the UK

12 best hotel spas in the UK

Some hotels go all out on facilities; others stand out for the sheer quality of treatments
These Iranian-controlled Shia militias used to specialise in killing American soldiers. Now they are fighting Isis, backed up by US airstrikes

Widespread fear of Isis is producing strange bedfellows

Iranian-controlled Shia militias that used to kill American soldiers are now fighting Isis, helped by US airstrikes
Topshop goes part Athena poster, part last spring Prada

Topshop goes part Athena poster, part last spring Prada

Shoppers don't come to Topshop for the unique
How to make a Lego masterpiece

How to make a Lego masterpiece

Toy breaks out of the nursery and heads for the gallery
Meet the ‘Endies’ – city dwellers who are too poor to have fun

Meet the ‘Endies’ – city dwellers who are too poor to have fun

Urbanites are cursed with an acronym pointing to Employed but No Disposable Income or Savings
Paisley’s decision to make peace with IRA enemies might remind the Arabs of Sadat

Ian Paisley’s decision to make peace with his IRA enemies

His Save Ulster from Sodomy campaign would surely have been supported by many a Sunni imam
'She was a singer, a superstar, an addict, but to me, her mother, she is simply Amy'

'She was a singer, a superstar, an addict, but to me, her mother, she is simply Amy'

Exclusive extract from Janis Winehouse's poignant new memoir
Is this the role to win Cumberbatch an Oscar?

Is this the role to win Cumberbatch an Oscar?

The Imitation Game, film review
England and Roy Hodgson take a joint step towards redemption in Basel

England and Hodgson take a joint step towards redemption

Welbeck double puts England on the road to Euro 2016
Relatives fight over Vivian Maier’s rare photos

Relatives fight over Vivian Maier’s rare photos

Pictures removed from public view as courts decide ownership
‘Fashion has to be fun. It’s a big business, not a cure for cancer’

‘Fashion has to be fun. It’s a big business, not a cure for cancer’

Donatella Versace at New York Fashion Week