The Supreme Court has asked the Securities and Exchange
Board of India (Sebi) to start the process of selling some of embattled
conglomerate Sahara's real estate assets in the country to refund millions of
investors, lawyers said on Tuesday.
Sahara, a household name in India as the former main sponsor
of the national cricket team, has major hotels overseas including the Plaza in
New York and the Grosvenor House in London, besides vast real estate assets in
India.
Its founder Subrata Roy was arrested in March 2014 after the
company failed to comply with a court order to refund money raised from
millions of small investors by selling them bonds later ruled to be illegal.
The country's top court in June last year said the group
needed to repay the entire Rs 36,000 crore the court says it owes investors in
illegal bonds.
Sahara has submitted to officials a list of 86 properties
which it claims are worth Rs 40,000 crore. However, the firm claims that it has
not been able to find buyers for the properties. The Supreme Court said that Sebi should not
sell the properties for less than 90 per cent of the circle rate - the listed
market value. If bids are below 90 per cent of the circle rate, the regulator
will have to take the permission of the court.
The proceeds from the
property sale will be used for securing bail of Sahara chief Subrata Roy, the
top court said. Mr Roy has been in jail for nearly two years and has been
unable to arrange Rs 10,000 crore for his bail, as ordered by judges.
Kapil Sibal, representing Sahara, argued, "Nowhere in
the world this type of case has happened. There is no jurisdiction in the world
that allows a person to be inside jail for two years without any charge."
Judges retaliated, "Don't lecture us. Nowhere in the
world does a man say he has Rs 1.87 lakh crore in properties and still isn't
paying (his dues)."
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