Gupta to stay free on bail during appeal

In a relief to India-born former Goldman Sachs director Rajat Gupta, a US appeals court on Tuesday granted his plea to remain free on bail while he appeals his conviction on insider trading charges.

Gupta, 63, was to begin his two-year prison sentence on January 8. After a hearing on Tuesday to stay his surrender date and remain free on bail, the two-judge panel of the Second US Circuit Court of Appeals granted Gupta's request.

"Motion is granted," Circuit Judge Jose Cabranes said in the ruling. "It is hereby ordered that the conditions of release imposed by the district court will be continued," Cabranes added. Gupta, who was arrested in October 2011 on insider trading charges, has remained free on a USD 10-million bond. His other bail conditions include surrender of his passport and travel restrictions.

The prosecutors had asked the court to reject Gupta's plea to remain free on bail saying the Indian-American former McKinsey head is a flight risk. Gupta's lawyers have argued in court papers that Gupta does not pose a flight risk since he has lived in the United States for more than forty years and his family, including his four daughters, grandchildren, and wife all live in America.

Gupta was convicted in June of passing confidential boardroom information about Goldman Sachs to his friend and Sri Lankan business associate Raj Rajaratnam. Gupta was charged in October last year and has been free on a USD 10-million bail since then. Rajaratnam, whose bid to remain free on bail was denied, is currently serving an 11-year prison term on insider trading charges.