The Sahara Group Wednesday told the Supreme Court that its deal with the Mirach Capital Group to raise a $650-million loan to comply with the court’s order to deposit Rs.5,000 crore in cash and bank guarantee of like amount has collapsed.
The apex court Jan 9 had permitted Sahara group to raise a “junior loan” of $650 million from Mirach Capital Group for the payment of Rs.5,000 crore in cash and a bank guarantee of like amount towards part payment of investors money that it had raised through the Optionally Fully Convertible Debentures(OFCDs) in 2008-2009.
The court by its March 26, 2014 order had asked the Sahara Group to deposit the amount in cash.
It had also asked for a bank guarantee of like amount for part payment of investors’ money -- a condition for the release of group head Subrata Roy and two directors from custody.
Senior counsel S Ganesh, appearing for Sahara, told the Justice TS Thakur-headed apex court bench that the Sahara Group was in talks with another leading overseas bank to raise the money to comply with the court’s order.
Ganesh told this to the court after amicus curiae Shekhar Naphade told the court about the controversy that has surfaced between Sahara Group and the Mirach Capital Group over the deal.
Naphade apprised the court about the allegations and counter allegations being exchanged between Sahara and Mirach Capital Group.
Asking Naphade to explore the alternate means to raise the money, the court wondered how could Sahara Group, having experience in financial dealings, say that it was tricked.
“You examine all other alternatives for getting money” the court asked Naphade as he told the court that there was “much more to it than meets the eye”.
Telling the court that they were victims, Ganesh said they had paid $2.625 million as service charges.
The senior counsel told the court that they came to know about the alleged letter, issued by Bank of America being forged Jan 31 and Feb 2, they filed an affidavit before the court stating their position.
Having told the court that they were victims, Ganesh said that we have much more at stake as Sahara chief Subrata Roy and two directors were in jail since March 4, 2014.
At this, the court asked Sahara to show to the amicus curiae the papers of whatever new deals it was entering into to raise the money. The court said after that it could make an application for the hearing of the matter.
The apex court Aug 31, 2012, had directed the Sahara group’s two companies -- SIRECL and SHICL -- to return investors Rs.17,400 crore then collected through OFCDs in 2008-2009 along with 15 percent interest. The said amount, according to SEBI, has more than doubled.
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articles.economictimes.indiatimes.com/2015-01-13/news/58024255_1_rs-300-crore-gurgaon-land-sahara-group
Corporations in India are routinely slapped on the hand (and not much more) for such transgressions. And, the usual tendency of CEOs is to think they can get away with this kind of non-sense. The attitude is.. let the buggers sue us.. we will hire a bunch of expensive lawyers.. .get unlimited extensions and see how things shape up in 15 years when the case reaches finality..
With the chairman/CEO in jail, Sahara has no choice but to buckle up and pay up... no more using the court system to get endless extensions etc.. just to buy time hoping that the issue will go away sometime in the future.. Bravo SC.. Bravo.. Nothing like the sight of a legal system delivering raw justice!!
twitter.com/intent/tweet?text=Here%27s why SC should set Subrata Roy free and take over Sahara properties instead via %40firstpostin &url=http%3A%2F%2Fwww.firstpost.com%2Fbusiness%2Fheres-why-sc-should-set-subrata-roy-free-and-take-over-sahara-properties-instead-2094625.html&original_referer=http%3A%2F%2Fwww.firstpost.com%2Fbusiness%2Fheres-why-sc-should-set-subrata-roy-free-and-take-over-sahara-properties-instead-2094625.html
As I had stated in an earlier post
This whole thing is really murky, ... The Supreme Court is not equipped to deal with this ... an appropriate govt agency must be tasked with getting the money out by seizing and auctioning all Sahara assets.
To me it looks as if the court is being used and manipulated.
So SEBI now discloses that the Sahara group "may not wholly own some of the properties in India it listed as proof of its ability to repay the savers."
see economictimes.indiatimes.com/wealth/real-estate/news/sebi-questions-ownership-of-sahara-properties-report/articleshow/46202162.cms
Sahara was selling its Indian properties during the period that the Supreme Court has incarcerated Subrat Roy.
It must be asked whether Supreme Court intervention by this so-called bail process has obstructed the recovery process or helped it.
And what about the forged BoA letter submitted to the Supreme Court. Will that be simply ignored by the Supreme Court?
Here's why SC should set Subrata Roy free and take over Sahara properties instead
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