The Sahara group on Friday sought the Supreme Court’s nod for sale of its three overseas hotels – Grosvenor House (London), New York Plaza and Dream Downtown in New York – to Qatar Investment Authority (QIA) for $1.6 billion.
A bench headed by Chief Justice TS Thakur posted the application for hearing on Monday. Sahara counsel Gautam Awasthi told the bench that the group understands that the proposed sale transactions are in compliance with the Supreme Court’s previous orders, but it still wants the apex court to “confirm that it has no objections to the Proposed Sale Transaction with QIA or with any other third parties.”
Saharas further said that Aamby Valley (Mauritius) and Sahara Grosvenor House Hospitality (in administration) had entered into a letter of intent with Qatar Holding LLC (QIA) on April 27 to explore the sale of Sahara’s interests in the three hotels.
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Pursuant to the LOI, Sahara has agreed to explore the sale of its interests in any of the three overseas hotel properties to QIA or any other party, at prices not less than 5% discount to the current market valuations done by either CBRE or JLL, it said.
Awasthi in its application stated that the apex court had on January 9 last year granted permission to Saharas to sell its three overseas properties or its equity interest in such hotels “with Nouam Ltd and/or to negotiate any other deal qua these properties, should the deal with Nouam Ltd, fail to fructify for any reason.”The permission was granted subject to the condition that entire sale consideration received by Saharas, after repayment of the loan outstanding towards the Bank of China, is deposited with Sebi, towards compliance of the bail order of March 26, 2013.
Awasthi also told the court that Sahara chairman Subrata Roy will deposit Rs 200 crore as directed by the apex court in May. The Supreme Court had then extended Roy’s parole till July 11, provided he deposited Rs 200 crore with Sebi by then, failing which he will be sent back to Tihar jail. This payment was in addition to the sale of 60 properties that Sebi is trying to sell.
The apex court on May 6 had allowed Roy to go to Lucknow on four-week parole to perform the last rites of his mother, Chhabi Roy.Roy and two other directors are in judicial custody since March 4, 2014 for not complying with the apex court’s August 31, 2012 and December 5, 2012, orders relating to refund over Rs 24,029 crore raised from three crore bond investors by two group firms -Sahara India Real Estate Corp and Sahara Housing Invest Corp.
The apex court in 2014 had set the bail amount at an unprecedented Rs 10,000 crore— half in cash and half as a bank guarantee.