Sahara Group Chairman Subrata Roy along with the directors of two group companies Sahara India Real Estate Corp Ltd (SIRECL) and Sahara Housing Investment Corp Ltd (SHICL) should be punished for violating the Supreme Court's order directing them to return investors' Rs 24,000 crore, capital market regulator Sebi told the apex court.

The market regulator's lawyer Arvind Datar argued in the Supreme Court Subrato Roy couldn't escape liability by claiming that he was only a shareholder and not a director in the two companies.

Datar also quoted documents showing that Roy hold 70 per cent stake in both SIRECL and SHICL, and he could therefore appoint a majority of directors, instruct them on how to act and control policy.

The lawyer also accused Roy and the directors of SIRECL and SHICL of willfully defying the Supreme Court's orders dated August 31st and December 5, 2012, to return the investors' money.

Arguing against Roy's claims, Datar said, "As promoter, he is liable to the same punishment as the other directors. The order to deposit money has not been complied with. This is a fit case for punishing for contempt."

Under the Contempt of Courts Act, a person guilty of competing a court's order can be slapped with a jail term of up to six months plus a fine.