Sahara Allowed to Sell Properties Worth Rs 2,700 Crore

The Supreme Court on Tuesday permitted the Sahara Group to proceed with the sale of four domestic properties in its bid to raise Rs 10,000 crore for the release of its jailed chief Subrata Roy. The property sale is likely to fetch Rs 2,710 crore.

The top court allowed the group to sell properties in Jodhpur, Pune, Chauma in Gurgaon and Vasai in Mumbai after it was satisfied that the transactions were in accordance with its June 4 order.

This order had stated that "such sales are not for a price lower than the estimated value indicated in the statement filed before the court or the circle rates fixed for the area in which such properties are situated".

A bench headed by Justice TS Thakur was told that the transactions for these properties would be completed by May 2015 and meanwhile, the purchasers would deposit post-dated cheques in the name of Sebi-Sahara refund account with undertakings that those would be honoured on due dates.

The bench, also comprising justices AR Dave and AK Sikri, was informed that the group has already generated Rs 184.5 crore as part payment for its assets in Jodhpur, Chauma and Vasai.

Regarding the sale of Pune property which would fetch Rs 550 crore, Sahara Group said that the agreement was not signed due to unavoidable circumstances and in the near future, the deal will be through and it is expected to get Rs 50 crore as initial part-payment.

Accepting the proposal, the bench permitted it to go ahead with the proposed deal and deposit Rs 50 crore with Sebi-Sahara refund account.

Out of the list of nine domestic properties, Sahara has already sold its Ahmedabad property and has raised Rs 411.82 crore which has gone into the account of market regulator Sebi.

However, Sahara Group would have to wait for getting clearance for raising $650 million (about Rs 4,000 crore at $1 = Rs 61) as a part of a scheme to overcome the liability with Bank of China which had lent money to it in purchasing stakes in three overseas hotels, Dream Downtown and The Plaza in New York and Grosvenor House in London.

Sebi's counsel Arvind Dattar and senior advocate Shekhar Naphade, who is assisting the court as an amicus curiae in the matter, submitted that certain terms of transactions were not clear.

The bench asked the Sahara group to provide all information sought by the amicus curiae and the market regulator within a week and posted the matter for further hearing on December 17.