As Sahara raises loans, prospect of Subrata Roy’s release brightens

NEW DELHI: The prospect of Sahara chief Subrata Roy coming out of jail appeared to have brightened with the company issuing a statement on Friday saying that it has sought the Supreme Court's permission to accept a loan from the Bank of China against three of its marquee properties in New York and London.

The company said it would be raising a loan of $650 million or around Rs 4000 crore against these properties. Roy and two Sahara directors have been in jail for the past nine months for failing to meet the apex court's stiff conditionality of depositing Rs 10,000 crore for their release.

The company said it has already deposited Rs 3,117 crore, and "the balance amount for compliance of the order dated 26.3.2014 (when the court ordered the condition of the release of the three) have been arranged and once necessary permissions are granted by the court, the money will reach Sebi in a phased manner." The Supreme Court has listed the matter for hearing on Tuesday.

The company has been trying to sell these properties but, according to company sources, was getting a "pittance" as the word had spread that it was a distress sale. But, now it appears to have convinced the Chinese bank to give a loan against the properties with which it hopes to meet the court's orders.

The court, on the insistence of Sebi, has asked Sahara to give details of the escrow account where the $650 million would be deposited. Once Sebi gives a no-objection, the money would be transferred in the account, the company said. The Supreme Court was also shown the agreements of sale with respect to domestic properties of Sahara. Sebi, however, has sought time to submit its response regarding the proposed sale of these properties located at Chomma, Jodhpur, Vasai and Pune.