Sahara tells SC its media operations shut down

Courtroom drama as bidders raise price for group's Gorakhpur property to Rs 150 cr

The Sahara group on Monday told the Supreme Court its television and press operations had been shut and its employees were deserting it. Also, there was a courtroom bidding war for a property of the group in Gorakhpur, Uttar Pradesh.

Sahara counsel Kapil Sibal told the Supreme Court its “television network and press have shut down; employees are running away.”  He added he was in the process of filing a petition explaining the difficulties faced by the group and how it would not be able to meet the conditions set by the Supreme Court for the release of group chief Subrata Roy.

Securities and Exchange Board of India (Sebi) counsel Arvind Datar told Sibal that Sahara had claimed its Aamby Valley property alone was worth over Rs 47,000 crore and it would be able to meet all its dues. Roy is in Tihar jail here since March last year for non-payment of dues to Sebi, by a Supreme Court order. The dues have now swelled to over Rs 36,000 crore, according to a June order by the court.

Reports said the police had to be called in as employees of the group at its Noida office agitated after finding the premises locked.  Some were planning to take the demonstrations to Jantar Mantar in Delhi.

Shares of Sahara One Media and Entertainment, which housed the group’s general entertainment channels and movie production businesses, traded sparsely, falling three per cent to Rs 71 apiece at the end of Monday’s trade. A Sahara spokesperson did not respond to calls.

Meanwhile, the courtroom saw a bidding war over one of the group’s properties in Gorakhpur. Gorakhpur Real Estate Developers took the price for the 45-acre plot to Rs 150 crore. This firm had earlier offered Rs 110 crore and it raised its bids after the original buyer decided to raise its price.

Samrudhi Builders, the original buyers which had inked a deal with Sahara to buy it for Rs 64 crore, also raised its bid to Rs 150 crore. The court asked both to file 25 per cent of the bid amount to the Sebi-Sahara account by July 31. The parties have also agreed to pay the remaining sum in three equal instalments by October 31, failing which they would forfeit the amount deposited.

The court has directed Sebi to present all cheques received by it on respective due dates for payment after a dispute arose over the property in Gurgaon. Divine Infrastructure, buyer of the Choma property, complained to the court that the titles provided by Sahara were doubtful after some title holders withdrew the power of attorney given to Sahara.

The counsel for Divine also said that the Sahara group had made representations during negotiations that it had a contiguous parcel of 100 acres. However, this express condition of the deal was not met as the land was in patches.  Divine has moved the arbitrator in the matter.

The judges said the bidder should have verified all these details before giving an undertaking to the court and directed Sebi to present its Rs 700 crore cheque for payment. The income tax department pleaded the court to pass orders recognising its dues of over Rs 7000 crore. But, the judges said that could be taken up at the later stage. The next hearing is fixed for August 3.