Sahara Makes another ‘Distress Sale’ For Subrata Roy

As expected, the Struggling Sahara Group sold a big land parcel at the outskirts of the national capital for Rs 1,211 crore to Gurgaon-based developer M3M India Ltd to raise funds to ensure release of its chief Subrata Roy from jail.

The 185-acre land in Gurgaon, with 12 million square feet built-up area, would be used for 'mix-use development' and has sales revenue potential of Rs 12,000 crore, M3M India Ltd said while announcing the deal.

M3M India Director Pankaj Bansal also asserted that it was not a 'distress sale' by Sahara and the deal has been inked on the basis of market price.

He further said that the entire amount will be paid in instalments over a period of six months, while post-dated cheques have been given to Sahara group for purchase of this land at Chauma village in Gurgaon.

The deal comes within days of Supreme Court permitting the Sahara Group to proceed with the sale of four domestic properties, which is likely to fetch Rs 2,710 crore, in its bid to raise Rs 10,000 crore for the release of its jailed chief Subrata Roy.

Roy, who was sent to jail on March 4 this year in a case involving alleged non-refund of over Rs 20,000 crore with interest to depositors, was asked by the court to pay Rs 10,000 crore to get bail, out of which Rs 5,000 crore should be paid in cash and rest of the amount in bank guarantee.

Sahara, which had earlier raised Rs 3,117 crore and deposited with SEBI, told the court that out of nine domestic assets, it has now sold an Ahmedabad property and raised Rs 411.82 crore which has also gone into the account of the market regulator.