Subrata Roy seeks more time for deal-making in Tihar jail

Group moves application seeking extension of special facilities for 45 days; claims 5 deals are on the table

Armed with new proposals for raising money from its assets, the Sahara group has sought extension of negotiation facilities in the Tihar jail here for its chief Subrata Roy by a further 45 days.

The fresh application to the Supreme Court comes after notice to the group on a Security and Exchange Board of India (Sebi) plea to appoint a receiver for assets. On September 28, the SC issued notices returnable in four weeks, after which Sebi could take two weeks for rejoinder.

These timelines would conclude in mid-November. Separately, Sahara's November-end deadline for repaying the Bank of China loan taken over by Reuben Brothers is approaching.

"As far as the deals are concerned, there are five deals on the table," a Sahara spokesperson said in response to an e-mail seeking comments on the latest plea. The spokesperson added that he couldnot share further details of the deals "at this stage".

Sahara has also asked the court to expedite verification of the truckloads of documents it gave with Sebi. The regulator has been served copies of these applications, according to people familiar with the development.

Sebi claims the group's dues have swelled to over Rs 40,000 crore due to mounting interest liabilities. In 2012, the apex court had ordered the two Sahara group entities to repay to 29.6 million investors over Rs 24,029 crore, along with 15 per cent. Sahara initially paid around Rs 5,120 crore and claimed that it has directly refunded the rest to the investors.

The court has in the past reiterated that according to the 2012 order, refunds could not have been made directly to investors and the group has to deposit the dues to Sebi first.

Sahara's inability to comply with these directions landed its chief Subrata Roy in Tihar jail, where he has been lodged for 20 months now.

The bench headed T S Thakur, who is taking over as the chief justice of India next month, directed Sebi to file an application seeking receivership, after several attempts by the group to raise money from overseas and domestic assets did not succeed.

DEALS AND OFFERS

• August 2014: Reports said the Brunei Sultan was in race to buy stakes in Sahara's marquee hotels abroad; but, deal was never confirmed
• January 2015: Mirach Capital had agreed to infuse $2 billion but ended in an ugly spat of allegations and counter-allegations
• June 2015:  Sahara said it had inked a deal with Reuben Brothers for takeover of loan by Bank of China
• August 2015: Media reports said the group had got repayment timeline extended to November 30.
• September 2015:  Supreme Court issued notice to Sahara on a application seeking appointment of a receiver filed by Sebi

On the group's assessment of the verification process so far, the Sahara spokesperson reiterated: "First of all, it is to be noted that Sahara has already repaid 95 per cent of its investors and original documents and vouchers pertaining to the same are also submitted with Sebi for verification."

The group suggested Sebi change its methods.

"Sebi is only issuing newspaper advertisements to seek refund claims from the investors and the majority, 95 per cent, who have already got back their money are neither addressed in these advertisements nor will they anyway, bother to reply to Sebi (even if asked), as they have already got their money refunded," the spokesperson added.

The group said it was imperative to understand that almost entire majority of Sahara's investors (including the remaining five per cent investors) reside in the remote parts of rural India and are mostly illiterate or sparsely literate.

"Many of them live in mud houses, hutments and even slums, where there are no street names or house numbers (as there are no municipalities in small villages to allot house numbers, etc.). Therefore, instead of merely issuing advertisements, a more serious and detailed approach should be adopted by Sebi to reach out to our investors," said the group.

Underlining its reach with 1.2 million workers, Sahara said it stands "in full abidance of the Hon'ble Supreme Court's order dated August 31, 2012" whereby it has been mandated that Sebi can take help of Sahara as without the same it is not possible to reach out to these small investors and Sahara is always ready to assist Sebi in reaching out to the aforesaid investors.