SC asks Sahara to explain why Mirach deal has not worked out

New Delhi: Supreme Court was today informed that the proposed transactions for a loan of around $1,050 million from abroad for raising Rs 10,000 crore to ensure the release of Sahara Group chief Subrata Roy from jail has failed. [caption id=“attachment_2083023” align=“alignleft” width=“380”]  Reuters image[/caption] The issue was mentioned before a bench headed by Justice TS Thakur by senior advocate Shekhar Naphade, who is assisting the court as an amicus curiae in the matter. Naphade orally said there have been allegations and counter-allegations between Sahara Group and Mirach Capital Llc of the US which was supposed to provide junior loan of $650 million and another $400 million in investment to the embattled group. After, the amicus curiae brought to the notice of the bench about the reports on the forgery allegation against the Mirach Capital, the bench said it cannot hear the matter without a proper application and affidavits filed by the parties. It asked the Sahara Group to explain by way of affidavit the entire development which has resulted in failure of the deal. The apex court made it clear that it can only hear the matter after a proper application was filed by the Sahara. Out of the amount of $1050 million, Sahara has been allowed to raise a junior loan of $650 million and $400 million in investment from Mirage Capital Llc. Naphade also said that the court would now be informed about the company’s new fund raising plan. The apex court had on 9 January allowed Sahara Group to go ahead with its proposed transactions with some conditions including the approval of RBI for the transfer to India of the funds raised in the US to meet the requirement set for release of Roy, who is lodged in Tihar jail since March 4 last year for non-refund of over Rs 20,000 crore with interest to depositors. Roy was arrested last February along with two other directors Ashok Roy Choudhary and Ravi Shankar Dubey. The apex court, which had asked 65-year-old Roy to pay Rs 10,000 crore to get bail, out of which Rs 5,000 crore should be paid in cash and rest in bank guarantees, had extended its 1 August order for conference facility for him in Tihar jail to deal with the nitty-gritty of transaction till 20 February. The bench had said Sahara will move the Reserve Bank of India (RBI) at appropriate level or before its competent authority and make representation for suitable clarification for bringing the amounts arranged in the US and deposit it in the account of Aamby Valley Ltd, Mauritius, a fully owned subsidiary of Sahara India’s Aamby Valley Ltd. Further, the bench said the entire loan amount generated from the US shall be deposited with Aamby Valley Ltd, Mauritius and not be utilised or transferred by the Indian subsidiary, for any other purpose except for being deposited with SEBI in the SEBI-Sahara refund account. Thirdly, the bench made it clear that Sahara will not be free to claim any equity on the amount raised as loan from overseas and deposited with Aamby Valley Ltd, Mauritius, for the purpose of bailing out Roy from jail. PTI