Sahara's properties at Jodhpur, Chomu, Pune and Vasai near Mumbai are expected to fetch about Rs2,700 crore
The Supreme Court on Tuesday allowed Subrata Roy-led Sahara group to sell four of its domestic properties that are likely to fetch about Rs2,700 crore. This includes Sahara's properties at Jodhpur, Chomu, Pune and Vasai near Mumbai.
The apex court also directed Sahara group to handover the proceeds from the sale to market regulator Securities and Exchange Board of India (SEBI) to facilitate bail for Roy.
Earlier, Sahara had told a bench headed by Justice TS Thakur that it could not sell its two hotels in London and another in New York as Bank of China, which has charge on these, has put hurdles.
When SEBI objected to deduction from the loan amount on Sahara's overseas properties for paying to Bank of China, the apex court asked SEBI to seek more details from Roy-led group on the loan agreement.
Last week, the SC had asked SEBI to suggest an asset management agency that could arrange better deals for the Sahara properties up for sale.
Sahara chief Roy has been imprisoned in Tihar Jail since 4th March on Court orders and his bail requires Rs10,000 crore, including Rs5,000 crore in cash and the rest in bank guarantees.
With an eye on auctioning the spectrum in February 2015, DoT and TRAI are hoping to finalise the consultative process for deciding base prices by 22 December
The Department of Telecommunications (DoT) under the Government of India (GoI) is planning on going ahead with auctions of 2G and 3G airwaves together in February. The auctions will be conducted after taking into account the base price recommendations given by the Telecom Regulatory Authority of India (TRAI).
The DoT had asked TRAI to expedite the decision on base price. TRAI released the Consultation Paper on “Valuation and Reserve Price of Spectrum: 2100 Mhz,” today. TRAI has invited comments and inputs on the Consultation Paper by 15 December. After counter-comments on 19 December, an Open House will be held on 22 December.
The Consultation Paper noted that the 2100 Mhz band which is used by 3G services is currently being used by the Defence services. Unless the Defence services agree to vacate this spectrum, this frequency will be unavailable for the auction.
When spectrum was auctioned in 2010, the Defence Services had vacated 20 Mhz out of the 25 Mhz spectrum that was being used by them. The agreement at the time was that the remaining 5 Mhz of spectrum would be vacated only if alternate infrastructure was made available for the Defence Services to migrate to.
If the Defence Services release only the 5 Mhz held by them in the 17 circles, then licenses to these circles will be auctioned. Another possibility is that the Defence Services would migrate to the 1,900 Mhz spectrum, so that not only it frees up the 5 Mhz held by them in various circles, but also an additional 15 Mhz on a pan-India basis.
Telecom companies, as well as the regulator, have been of the view that the auction should take place only when adequate spectrum is made available, and the bidding should be held simultaneously for both the services - 2G and 3G.
After declaring Kingfisher Airlines and its four directors, including Vijay Mallya as defaulter, the United Bank has identified United Breweries Holdings, the guarantor to this loan, as wilful defaulter
United Bank of India has identified Vijay Mallya-led United Breweries Holdings, the guarantor of grounded Kingfisher Airlines, as wilful defaulter.
The bank has already declared Kingfisher Airlines and its four directors, including Mallya, as wilful defaulters.
"We have identified United Breweries (UB) Holdings as wilful defaulter because company had the resources to repay the loan as guarantor of Kingfisher Airlines," United Bank's executive director Deepak Narang has said.
UB Holdings had additional resources available as per the balance sheet of 2013-14, he said, adding, these funds could have been used for paying loans given to Kingfisher.
The bank issued notice to the UB Holdings and got a reply, which was not satisfactory.
"We would take further action after due deliberations on the issue," he added.
In September this year, UBI became the first lender to declare debt-ridden Kingfisher Airlines, its promoter Vijay Mallya and other directors wilful defaulters as the company allegedly indulged in diversion of funds by opening multiple accounts.
The other directors declared as wilful defaulters by the Grievance Redressal Committee (GRC) of the bank are Ravi Nedungadi, Anil Kumar Ganguly and Subash Gupte.
Kingfisher Airlines and directors declared as wilful defaulters now will not be able to borrow from banks in the future. They would also lose director-level positions in companies and criminal proceeding could be initiated against them, if warranted, to recover the money.
The bank had first given notice to declare Kingfisher Airlines as wilful defaulter on 28th May. However, the company approached Calcutta High Court against the notice.
A single bench dismissed the company's plea. Subsequently, it approached double bench, which upheld the single bench order on 28th August.
UBI's exposure to Kingfisher Airlines was around Rs350 crore as part of consortium led by State Bank of India.
The consortium of 17 banks has an outstanding debt of about Rs6,521 crore from the now-grounded carrier. Outside the consortium, UBI gave about Rs60 crore loan for pre-delivery payment.