Bench accepts requests of companies who wished to purchase the properties of Sahara founder
A courtroom in the Supreme Court became a pop-up stall for companies who wished to purchase properties owned by Sahara. Once the top court ordered Sahara to sell its properties, an international real-estate firm expressed its interest in the firm's iconic Plaza Hotel in New York.
On Tuesday, Sahara's Subrato Roy submitted a list of encumbered and unencumbered properties that could be put up for auction to expedite the recovery of Rs 14,779 crore the company owed to its duped investors. In pursuant to an earlier order, Sahara had submitted a list of properties that could be auctioned amounting to a little over Rs 5,092 crore.
However, it is interesting to note that the Plaza — located in Midtown Manhattan along Central Park — was not included in the list. A 42.85 per cent stake in the Formula One team - Force India, worth Rs 510 crore was one of the assets up for grabs and another 91.65-acre property that is currently under the stewardship of Ghaziabad Development Authority amounting to Rs 112.70 crore was also listed.
While the court, Sahara and market regulator SEBI were deciding on the best way to dispose of the properties — the court favoured public auction, SEBI was non-committal submitting previous failures at auctioning Sahara properties, whereas Sahara wanted to sell it on its own. Finally, the court gave Sahara time till April 17 to sell the properties and deposit at least a substantial portion of the Rs 5,092 crore listed.
"We are willing to buy the New York hotel for $550 million (roughly Rs 4,000 crore)," said Sriram, the advocate representing MG Capital Holdings, LLC, the international real-estate firm who wished to buy the historic hotel.
Pleased with the quick development and the interest generated, Justice Dipak Misra directed the real estate firm to deposit Rs 2,000 crore to prove its bonafide intent. The firm however balked at the large amount and tried to settle the amount at Rs 100 crore.
Ultimately, the firm agreed to deposit Rs 750 crore. It also agreed to share its details with Sahara so that appropriate background checks can be done.
While, the real estate firm was shutting shop, an advocate representing another buyer expressed his intent to purchase a property in Vellore, Karnataka. "We are willing to pay Rs 43 crore, one crore more than its final value at auction, for the Vellore property," the advocate said.
Sahara which allegedly duped its investors of Rs 24,000 crore has been finding ways to raise money to pay off the principal amount. If Sahara fails to deposit a substantial portion of the Rs 5,000 crore, then Subarato Roy may be sent back to jail.
Roy was sent behind bars on March 4, 2014 when he failed to comply with the court's orders and deposit Rs 10,000 crore as bail amount. Roy was granted parole to attend his mother's funeral in July 2016. He has been out ever since.
So far, Sahara has managed to repay a little over Rs 11,000 crore. However, this simply takes care of the principal amount. The court then attached Roy's crown jewel, Aamby Valley, which is located about 100 kilometres from Mumbai and is valued approximately at Rs 39,000 crore.
The Plaza Hotel, a landmark 20-storey luxury hotel and condominium apartment building is located on 768, Fifth Avenue in Midtown Manhattan. According to its website, "Nothing unimportant ever happens at The Plaza". The hotel, which opened on October 1, 1907, has historical importance attached to it. During its lifetime, the hotel has changed hands several times. It was once owned by President Donald Trump.
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