ED seeks SC nod to attach Sahara's foreign assets

At stake: assets worth Rs 3,697 crore; Court to hear matter on Feb 27

In what could well be another blow to Sahara, its prime foreign assets to the tune of Rs 3,697 crore could be attached by the Enforcement Directorate (ED) under the Prevention of Money Laundering Act (PMLA).

This would be another major action against Sahara after the Supreme Court on Monday ordered attachment of the Group's prime Aamby Valley property in Pune, worth nearly Rs 40,000 crore, to make up the payment for the remaining Rs 14,779 crore the company owes investors with market regulator Securities and Exchange Board of India (Sebi).

The ED had sought the Supreme Court's (SC) permission to do provisional attachment of Sahara's two properties -- one in the US and another in the UK. Sahara owns controlling stakes in New York's iconic Plaza Hotel and Dream Downtown and London's Grosvenor House.

SC will hear the matter on February 27.

"Once we get a nod from the apex court, we will send letters rogatory (LR) to competent foreign authorities in both countries to assist in attachment and get the possession of the assets," said a senior ED official.

This is part of the legal procedure an Indian investigative agency follows in case of foreign asset attachments, he added.

The ED had registered a PMLA case against Sahara in November 2014, after the market regulator asked them to investigate on the money laundering aspect.

During its two-year probe, enforcement sleuths established a money laundering case of Rs 4,000 crore raised by two group firms, Sahara India Real Estate and Sahara India Housing Investment.

"The money trail shows that the group had diverted funds to the US, and the UK in 2010," said the official cited above.

The ED investigation gained momentum when one of the directors of Sahara India, who was given conditional bail by the apex court, had disclosed all details pertaining to the 4,500 bank accounts spread across the country which might have a direct link to the allegedly laundered funds. Accordingly, ED officials had initiated action against two private banks, which were believed to have acted as 'facilitator' in transferring money abroad.