Sahara India Chief Subrato Roy
The Sahara group chairman Subrata Roy (C) with his face smeared in ink thrown by an unidentified man upon his arrival at the Supreme Court in New Delhi March 4, 2014.Reuters

Jailed Sahara chief Subrata Roy failed to submit a bank guarantee of ₹5,000 crore, a condition set by the Supreme Court for his release.

The Sahara Group chief will remain in jail as long as he fails to produce the bank guarantee.

The court has ordered Roy to deposit ₹10,000 crore for his release. The court asked him to pay half the amount in cash and remaining half as bank guarantee. Roy had already deposited ₹5,120 crore in cash before the court, NDTV Profit said.

The Lucknow-based financial services group, which has a presence in media, real estate, hospitality and entertainment, failed to furnish the guarantee as a bank withdrew from providing it at the last minute.

Roy, a high-profile business leader, has been behind bars following Sahara's failure to comply with a court order to return the money to investors it had raised through an illegal bond programme.

The Supreme Court said that the Sahara Group has to refund nearly ₹36,000 crore to bond investor in 9 instalments in the next 18 months.

The court also said Roy and two other directors of Sahara will be again taken into custody if he defaults on paying on any three instalments.

The court has also ordered the accused to submit their passports and prohibited them from travelling abroad without taking permission from the court.

However, the conditions will come into effect only after they produce the bank guarantee.

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