Sahara employees help to raise 300b rupee bail for Subrata Roy

Sahara group employees are helping to raise 300 billion rupees (HK$12.95 billion) in bail money to free the financial giant's chief Subrata Roy from prison, company officials say.

Roy, 65, was sent to New Delhi's Tihar jail on March 4 over a case involving the repayment of billions of dollars collected in an illegal investment scheme.

Earlier last week, the Supreme Court ordered Roy, who has a mansion modelled on the US White House, to post the bail.

In a statement, Sahara said the move to raise the money was "an emotional initiative".

But media reported that Sahara chiefs had sent e-mails calling for contributions, a claim denied by an executive.

Sahara raised 200 billion rupees from millions of small savers through an illegal bond scheme.

Regulators ordered the group to pay back the money with 15 per cent interest, even though the Supreme Court said there were "serious doubts about the existence" of the investors.