Sahara chief's counsel Ram Jethmalani told the top court that conditions in Tihar Jail are over-crowded and "we found an international buyer but which international buyer would go to Tihar for negotiations".
Mr Jethmalani also said Mr Roy may be kept under house arrest with conditions like reporting to the court every day. Supreme Court told Sahara chief's lawyer that "we haven't punished you. You are under our custody."
The Supreme Court was hearing a petition filed by Sahara chief seeking quashing of March 4 order sending him and two other top Sahara executives to jail. The next hearing is scheduled for April 16.