Supreme Court allows Sahara to raise loan for Roy's bail

India's top court has cleared the way for embattled conglomerate Sahara to raise fresh loans totalling $1.05 billion using its overseas hotels, helping the group to fund the bail payment needed to release its jailed boss Subrata Roy.

The Supreme Court has set conditions on the fund raising, however, and on Friday asked Sahara to obtain necessary approvals from the Indian central bank and other authorities to comply with foreign exchange rules.

Ruling on Sahara's plea, the court also permitted the group's chairman Subrata Roy to use a makeshift office inside the jail premises, with facilities such as phones and computers, from January 12 to February 20.

Image: Sahara Group chief Subrata Roy. Photograph: Pawan Kumar/Reuters