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Billionaire Subrata Roy strangely can’t raise money to get out of jail
Sucheta Dalal 17 February 2015
Does Sahara really own the assets it claims to own? If so, why the struggle to sell some of them?
 
The government has been quick to send out notices to the Aam Admi Party (AAP) and Congress on their alleged benami election funding. But consider the silence of all tax agencies on the astonishing drama being played out before the Supreme Court of India in the Sahara Pariwar (group) case, even as group chairman Subrata Roy remains in jail for almost a year. 
 
Why is a man, who had an endless supply of money to acquire marquee properties around the world, sponsor the Indian cricket team for years, gift lavish bungalows to cricketers, claim ownership of several sports teams and stadia and throw lavish parties, not able to muster Rs10,000 crore of legitimate funding to get himself out of jail? And what does it say about a country which makes a big deal about bringing black money back from Swiss bank accounts when it has no clear idea of the source of funds of the home-grown but shadowy Sahara business empire? Why is the Sahara group struggling to sell high-profile properties, despite having unprecedented facilities (air-conditioned conference room and video-telecommunication facilities) provided in Tihar jail? 
 
The latest twist in the jail-bail drama around Subrata Roy is that the proposed $2.05 billion buyout of Sahara’s hotels in London and New York by Mirach Capital of the US has fallen through. Sahara has alleged that a letter of guarantee from Bank of America for over $1.05 billion provided by Mirach turned out to be forged. Mirach denies the forgery and claims it is still ready for an outright purchase of Sahara’s three hotel properties.
 

For those who have forgotten, a path-breaking judgement of the Supreme Court, in August 2012, asked two realty companies of the Sahara group to refund Rs24,000 crore collected from investors through an unregulated, debenture-like instrument. But, after paying up just Rs5,120 crore, Sahara resorted to drama and hurled allegations against the regulator through an ill-considered advertisement campaign. It has not been able to prove the existence of even a fraction of the large investor base that it had claimed. The group’s antics angered the apex court; Subrata Roy was held in contempt and sent to jail until the Sahara group deposited Rs10,000 crore, in addition to the money already deposited with the Securities & Exchange Board of India (SEBI). 
 
At the February hearing, the apex court was told by the amicus curiae that there was more to the failed deal than meets the eye. More shocking were reports that a letter, allegedly issued by Bank of America to Mirach, the white-knight-to-be, was forged. More interestingly, Reuters reports SEBI’s apprehension that several of the assets that Sahara claims to own (as proof of its ability to repay investors) may not entirely belong to the group. This, if true, opens a whole new can of worms and suggests benami ownership which, again, our investigation agencies have not got wind of, for decades. SEBI also seems to have discovered the ownership issues only when it seemed likely that Sahara’s assets would be sold to raise the money that has be refunded to investors as per court orders.
Comments
Dayananda Kamath k
1 decade ago
My simple question is why shara has to pay more than 60% of the amount claimed to have been collected by them for bail while Jayalaita and sharda scam detains can get bail for paltry amounts. Justice should be done but it also must appear to have been done. And how far is it right to sell the firms property to the detriment of the interest of stake holders of these properties for providing bail money to sahra, is it not amout to breach of trust. does supreme court wants to be a party to this offence by facilitating the sale.
Reply
Mahesh S Bhatt
1 decade ago
Nani Palkhiwala's beautiful comments reminds me his quote

"Man's propensity to Earn More than he deserves has always led him to untold miseries."

See Sahara/Shivsena Bros/Ambani's/Birla/Goenkas/Hiranandani/Raheja all have fought/broken empires.

Paradox is their valuations have gone up after the breakage.

There is some

Mahesh
Reply
Mahesh S Bhatt
1 decade ago
We shall never know as our Politicians are behind him so are most of our ruling lot.
Challenge is too much of Laws have brought total DISORDER instead of Order in House/Nation/International levels too.

Remove taxes we pay 80 plus types of direct /indirect taxes,now we shall have Cleanliness tax from Center too which Modi is proposing.
Government after Government makes taxes poor compliances high fines more more corruption.
Land/Air/Water/Power/Roads/Educatuion/Healthcare/TV/Phone/Food /Services/car/Excise/Income/Customs/Salt/Entertainment/Corporate/Property/Stamp Duty everythings is tax tax tax.

So enjoy Courts have fun goons are unmanagable.Sahara is biggest NBFC with assets claim of few lacs of crore last which I read at Sahara Studio Mumbai office in 2000 was 1.75 lac crores.

We have buildings & buildings lying vacant since 6 years in Dadar/Bombay Central claiming investor money.

NPA 2.4lacs crore Nov 14.Courts shall be more & more busy in times to come.

Celebrate Chill Watch the Economic Drama in India & Global.

Advice weak hearted shouldnot be in the show.

Saare Jahan se Accha Hindutan hamara Hum 147 /181 rank achieve kiye hai abhi improvement bahut baki hai.

Mahesh
Reply
Prabhakar V Hegde
1 decade ago
Messy messy mess. A detailed invistigation into entire 'Saha' enterprise is needed to understand the whole truth, till then it is only tip of the ice burg!
Reply
Vaibhav Dhoka
1 decade ago
Sahara is case where all regulators are fooled/hand in glove or party to SCAM.
Reply
Kiran Aggarwal
1 decade ago
Was there no Fixed Asset checking done under Auditing process??

Sahara story is best case study of
institutional collapse at many levels.

--------------

Richie Rich who is not rich is the person named Mr. Roy
Reply
Sreejil Kalathil
1 decade ago
It seems they will have to fabricate new plans to bail out subrata roy. Well truth some times takes time to reveal itself. Sahara will also have to wait I guess.
Reply
Leslie Menezes
1 decade ago
A close unofficial watch on many of these high profile jailbirds may be illuminating as to the actual life enjoyed by them "in jail" and "on record in jail". Why give 10,000 crores when there are the jail staff, investigating staff, and the hirarchy who can be persuaded and some of this money lavisged on them for "better returns".
Reply
Aditya Singhal
1 decade ago
Couldnt be more appropriate and correct. Who will take the veil off? May be AAP!
Reply
Amit Mittal
1 decade ago
It is everybody knowledge that all these groups Sahara, kuber, Saradha etc. are/were shady businesses. It has been long that these were enjoying political involvement and patronage. they cared least about the law and ethics. All of these scamsters should meet with an outcome that serve as deterrent for future scamsters.

Last couple of comments seem like the handiwork of social marketing teams hired by sahara.
Reply
SuchindranathAiyerS
1 decade ago
Apart from an air conditioned conference room and video conference facilities, what else keeps Subrata Roy in jail? Did India's rulers put in that 19 hole Golf Course and Five Star annexe in anticipation of their own incarceration, as well?
Reply
Sarika Khanna
1 decade ago
How is this possible, if they were not owning the assets, how would they claim to sell it. This is an entirely new story that has come up. I dont think it is possible.
Reply
Prachi Sharma
1 decade ago
its funny how you are actually agreeing that Mirach had forged documents and then blaming Sahara for calling off the deal. Had they gone ahead with it, you would have probably claimed that they themselves forged the documents?
Reply
Aakriti Kaul
1 decade ago
Sebi had claimed a lot of things earlier but they havent been able to prove any. Even after several attempts, they havent been able to find the unpaid inestors, they found just 4600 till now as opposed to the crores of investors they had claimed. What about that? Even the SC has asked them to find the investors at the earliest.
Reply
Sonali Gupta
1 decade ago
This is so strange, Sahara could have easily gone ahead with the Mirach deal but it chose not to after learning of the forged document. Still it is being blamed. Even in these trying times, they did not compromise on their principles. What more do people expect them to do?
Reply
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