Sahara Group have 90 days time to raise Rs 1,200 crore

On Monday, the Supreme Court gave a time period of 90 days to Sahara group to finalize the deal of its three hotels which includes abroad and domestic properties to raise the Rs 5,000 crore cash component of the bail condition for release of its owner Subrata Roy and its other two group directors. As per the statement of a bench of Justices A K Sikri and T S Thakur, we have given you the last and final opportunity and this time if you will fail so we will appoint the receiver for auction of your assets.

Why money is essential for Sahara Group:

Last year on March 4, Roy was sent to jail for the violation of the order of apex court on dated August 31, 2012, directing two group companies to return Rs 24,000 crore to investors. Sahara has deposited Rs 5,120 crore by claiming that it had a liability of just a little more than Rs 2,000 crore. However, it is well know thing that on March 26, 2014, the court was granted an interim bail to Roy and its two directors by stating that they would be released only after the deposit of Rs 5,000 crore in cash and furnished bank guarantee for another Rs 5,000 crore. Till now the group has deposited approx. Rs 3,800 crore and is short by Rs 1,200 crore. Appearing for Sahara, its senior advocate Kapil Sibal told the bench that one of the Hong Kong-based financial reconstruction companies is facilitating a 900 million euro deal with Dubai based firm known as Trinity that would take over Bank of China’s (BoC) charge on the three hotels, Dream Downtown and the Plaza in New York and Grosvenor House in London.

The more he added that the buyers Spanish Bank BBVA has confirmed the buyer’s financial capability that had certified that the buyer had more than 900 million euros in its account and it represents that they had earned and through non-criminal activities.He said the buyer’s financial capability was confirmed by Spanish Bank BBVA, which had certified that the buyer had more than 900 million euros in its account which was legitimately earned and through non-criminal activity. Sibal said that after paying off BoC, Sahara would get Rs 650 crore, which would be deposited towards meeting the bail bond conditions.

An effort to raise Money:

However, when SC asked that how Sahara group will arrange the remain money for bail, so Sibal replied that Sahara Group was planning to sell more than 10 properties including residential and commercial properties and in addition to nine already identified for the purpose. Out of nine, the group has already sold five and it will provide another Rs 700 crore, the Sibal added. The bench of SC said it was prima facie satisfied with the group’s extended conference room facility and proposal in Tihar jail for Sahara Chief and two directors to negotiate and finalize the deals. On the competent of bank guarantee, Sibal added that the group plans to pledge 800 acres of its Aamby Valley project, so that an Argentine bank can get a bank guarantee through HSBC and Panama is one of the names of Aamby Ventures, Mauritius.

According to bank, Aamby Ventures is nominating the Rs 5,000 crore bank guarantee in of SEBI-Sahara account, but court said that as you are struggling to raise Rs. 1,200 crore for your release, so a very next day after your release from jail we can ask for the rest Rs 30,000 crore as you were directed to pay. So do you have any plan to arrange that money or how you are going to arrange that money in future? In reply Sibal added that “we don’t agree that we have the liability to pay Rs 30,000 crore as we are not arguing that today, just allow us space to cross the first hurdle in the fight, on that issue we will argue on another day. After knowing a soft corner Justice Thakur has for poetry Sibal stated that “Roj ki yeh jang hai, kaheen kati patang hai! Mauka mila fir bhi, laga raasta to tang hai” to highlight the difficult period the Sahara group through which Sahara group is going through in these days to carry on negotiation process to sale the property.

In the reply of the “shayari” of Justice Thakur, on Monday Justice Sikri return the favor by saying that, “Dard ki yoon aadat ho gayi hai! Jis din dard na mile to bhi dard sa hota hai” to drive home that such financial difficulties have become a way of life for the Sahara group.

Sahara chief Subrata Roy

It is reported that Sahara group has sold a plot near Delhi-Gurgaon border, which is worth of Rs 1,211crore and M3M India has brought it, which is Gurgaon based real-estate developer. It is considered as the one more step to raise the funds for bailing out Subrata Roy, a chairman of Sahara India, as Supreme Court allowed Sahara India to sell four properties located in Pune, Chauma, Jodhpur and Vasai. In the response of an e-mail Sahara India said, “We have presented all the relevant records in front of the honorable Supreme Court. Since it is the matter of sub-judice, we cannot comment any further on your query”.

M3M announced the sale on Thursday, but Pankaj Bansal, Director at M3M India, stated that it was not a distress sale by Sahara India. According to Pankaj Bansal, “M3M plans to build a mixed-use project on the land to build the internationally-branded residences and serviced apartments with retail and entertainment zones.

Sahara India, has been trying to sell the 185 acres, nearby IGI Airport (Indira Gandhi International Airport), from last one year. As per close officials, it had initially put a price of Rs 1,700 crore for the plot, but the deal with M3M has been closed at Rs 6.5 crore an acre. Brokers and market experts stated that, ongoing rate for an acre of land in this area is between Rs 9 crore and Rs 10 crore. In this project M3M will be able to construct on approximately 12 million sq ft. About deal M3M informed that court was about to sale, which then gave permission to close the deal, while explaining about payment arrangements, Pankaj Bansal, Director at M3M India said, “Our company has six post-dated cheques and Sahara India will get the entire money in form of installments in next six months.

One of the biggest known companies of India, Subrata Roy was sentenced to Tihar Jail in the month of March 2014 as he was unable to persuade the judges that he was willing to return the money amounting to around 20,000 crores, back to the investors who were cheated in the bond scheme launched by the Company. This scheme was deemed unlawful. At that time judges were not happy with the demeanor of Roy as he tried to project himself a human being who is fun loving and enjoys life. Judges view didn’t go well with idea of Roy as they were more interested in the plan in through he aims to return the money of investors of small villages and towns.

Sahara Chief was embarrassed by many situations including the one in which on of the lawyer through ink on him saying he is the person who is involved in robbing money from poor. This financial situation of the company started to shake in the year 2008 when major part of the firm’s operation was shut down as per the order of the court.

In five month after being in the biggest jail of India, Tihar, Roy who is the owner of one of the most prestigious hotels like New York Plaza and London’s Grosvenor House is planning to sell these propertied out.  In order to post bail and get out of Tihar Jail, he need to give a security deposit of Rs 10,000 crores and for this he is ready to sell two of his popular properties in New York. He has been given the privilege to set up a reserved office very close to the Tihar jail’s head quarter.

He has been given permission to meet potential visitors who might be able to sell and lease his property in order to raise money for bail. As per the statement of the bank officials he can even hold video conference in his office which is merely 56 Sqm. Just beside this office there are three beds put up for Roy and his two other associates who have been jailed along with him. Based on the orders of the court special arrangements have been made due to which he can now meet people all day long. Initially Roy was not sure whether he will be able to get the money arranged but now he is sure that it can arranged through this office cum cell. This is one of the largest bails that have ever been posted for someone’s release. He has not yet been charged against the dispute raised as he is against any unlawful activity.

As per Roy, New York Plaza is one of the property which can help in raising quick money as it is considered a vintage hotel and partly owned by Kingdom of Saudi Arabia. In this hotel even a single night can cost a person nearly $30000. Roy had purchased this plaza for nearly $570 Millions and Grosvenor House for about $790 million.

Even though many might think if he can get potential buyers but as per market consultants, a property like this will attract any buyer. And even though Roy is under surveillance all the time, he is determined to get the money for bail, all the take has to be taken as the sale can’t be done in hurry even though the deadline given by the court is approaching. If required, extension might be requested on the deadline.

Even though the Company was into selling products into small villages and town, out of which some of were deemed against the law and created problems for Roy, but whatever it takes, the property will be sold and he will be out in his fashionable style.