The Supreme Court on Tuesday permitted Sahara group to sell its four domestic properties in Jodhpur, Chauma, Pune and Vasai to raise fund for release of its chief Subrata Roy's release from jail.
The court, however, made it clear that the buyers of these four properties have to give undertakings to the court that they will pay the whole amount within the time.
A bench headed by Justice T S Thakur allowed Sahara to proceed with the deal after market regulator Stock Exchange Board of Indian (SEBI) gave no objection to the sell of domestic assets.
SEBI, however, questioned Sahara's decision to raise junior loan of Rs 3,600 crore on its three hotels abroad.
The court asked Sahara counsel to address the issues raised and provide within a week the documents to SEBI.
Roy, who is in jail since March 4 for non-refund of over Rs 20,000 crore with interest to depositors, was asked by the court to pay Rs 10,000 crore to get bail, out of which Rs 5,000 crore should be paid in cash and rest of the amount in bank guarantee.
Sahara handed over three demand drafts and a cheque of Rs 184.5 crore as a down payment for these sales and said the remaining sale consideration of Rs 2646 crore from these properties is expected to be received by May next year.
The group, which has sought court's permission to sell these domestic properties as one of them will be sold below the 5% margin fixed by the court, also urged the bench to allow it for mortgage of its three overseas hotels-- Dream Downtown and The Plaza in New York and Grosvenor House in London for which it has entered into an agreement with another firm for the take over of another loan (junior loan) of Rs 3,600 crore replacing the Bank of China.
During the argument, SEBI's counsel and Amicus Curiae said Sahara's proposal for mortgaging the offshore properties is a "complex transaction."
SEBI's lawyer said the group was facilitated to sell the properties abroad but they did not try for second buyer after their deal with Brunei Royal failed and now they want to take second loan on the assets.
"We have received mails from several people abroad who are ready to buy the hotels but Sahara did not make any effort to proceed," the lawyer said.
"What is the outstanding amount of Bank of China? What are the terms and conditions with junior loan, How much amount will come to escrow account after deduction towards tax. It is complex transaction which will lead to increase the company's liabilities manifold," the counsel also submitted.
Amicus Curiae Shekhar Naphade said that, "From the documents produced , we are not able to verify that how much money will come to us." He also pointed out that that the escrow account through which this arrangement will operate was subject to US laws.
Further, he submitted that the junior loan being raised was at a higher interest rates and was for a period of 364 days only and what happens after this period.
Sahara has so far raised Rs 3,117 crore and deposited with SEBI and its counsel said out of nine domestic assets it has now sold an Ahmedabad property of Rs 411.82 crores which has also gone into account of SEBI.
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