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How Madison Capital could be helping Subrata Roy to get out of jail

Tuesday, 29 July 2014 - 12:10pm IST | Place: Mumbai | Agency: dna webdesk

Madison Capital, a real estate giant based in New York, wants to buy Sahara's New York properties that include The Plaza and Dream Downtown for $800 million, media reports suggested.

The Sahara group is looking to sell 3 prime properties: two in New York, and the other is luxury hotel Grosvenor House in London. There are other contenders for the deal which includes Poonawallah family (interested only in the London property), the Sultan of Brunei and an investor group backed by the royal family from Qatar.

Subrata Roy must sell the properties real fast to comply with the court orders which makes it mandatory for them to raise Rs 10,000 crore to bail him out of jail. Roy, who has been in jail since March 4 this year, has not been granted bail by the Supreme Court, even to negotiate the deals. The Court had told the company that negotiations from within the jail could be facilitated.

The Sahara group has to return a total of Rs 24000 crore that it had collected from investors. The instrument used to collect the fund were later adjudged to be illegal.

The group has to also take care of the approximate loan amount of Rs 5000 crore that it has borrowed from the Bank of China which is also related to these properties.

According to the Sahara website, the net worth of the company stands at Rs  68,174 Crores with a land bak of 36,361 acres. Much of this will have to be used up first if Roy wants to get out of the jail. 

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