Top Indian businessman surrenders in fraud case

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Associated Press

Posted on February 28, 2014 at 2:01 AM

Updated Friday, Feb 28 at 3:12 AM

NEW DELHI (AP) — A top Indian businessman surrendered to police Friday after failing to show up in court on charges that his company failed to return billions of dollars to investors.

The Indian Supreme Court issued an arrest warrant for Sahara India chief Subrata Roy after he was a no-show in court Wednesday.

Roy turned himself in on Friday in Lucknow, the Uttar Pradesh state capital, and missed the court date because his mother was ill, according to his son and Sahara director son Samantha Roy.

Sahara is well-known throughout India because it sponsors the Indian cricket team. The company has interests in microfinance, media and entertainment, tourism, health care and real estate including the Plaza Hotel in Manhattan and London's Grosvenor House Hotel.

The Indian securities regulator has accused Roy's group of raising nearly 200 billion rupees ($3.2 billion) through bonds that were later found to be illegal.

Sahara India says its liability was much less and it already has repaid many investors directly.

Samantha Roy told reporters in New Delhi on Friday that his father would abide by the law and respect the court's rulings.

Police visited Roy's home in Lucknow on Thursday to arrest him, but couldn't find him there.

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