Sahara to move court for submitting fresh deeds

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Roy and Sahara vs SEBI fight to be continued as market regulator files new petition in the SC.

 A week after the Supreme Court of India barred Sahara chief Subrata Roy from leaving the country for failing to furnish proper title deeds worth Rs 20000 crore to Sebi, now; Sahara would seek the court’s approval to deposit the deeds to a nationalized bank instead.

In an order dated October 28, the court had asked Sahara to deposit imaginative title deeds of their assets worth Rs 20,000 crore as an assurance against deposits raised by the firm through OFCD (Optionally Fully Convertible Debentures). The market regulator found some of the deeds unacceptable in the absence of original deeds and overhaul of valuations.

Sahara has identified fresh title deeds out of its total immovable assets worth nearly Rs 1,20000 crore, and will comply with the apex court ordered.

Meanwhile, the deposit taking business of Sahara has not been affected by the Sebi order. The company has outstanding public deposits worth Rs 35,000 crore at present.

Also, Sahara is thinking of expansion plans and to hire nearly 48,000 mid level executives in the next nine to 10 months and about 250,000 lower level employees in the next two-and-a-half years. Revenue from new investments by the company in the next eight to ten years would touch Rs 18,00,000 crore, according to a source.

The company’s investments include a mega township project over 500 acre a 500 bed hospitality project in West Bengal, and a dairy project in Madhya Pradesh.

Sahara also accused Sebi of underrating Sahara’s property deeds, which were submitted earlier. Properties for which the government circle rate was Rs 5 crore per acre and market price of Rs 9.5 crore and acre, Sebi could manage to get the valuations at Rs 54 lakh per acre. Today the fair value of all the assets of Sahara Group is Rs 1,20,000 crore, according to the firm.

Sahara had already deposited nearly Rs 22,000 crore with Sebi so far.

In 2012, Sahara acquired two iconic New York hotels-New York Plaza and Dream New York-both based near Manhattan’s Central Park, while in 2010, it had had acquired Grosvenor House in London in 2010.