![Roy and Sahara vs SEBI fight to be continued as market regulator files new petition in the SC.]
![![Roy and Sahara vs SEBI fight to be continued as market regulator files new petition in the SC.]](http://info.propertywala.com/files/2013/04/Roy-vs-sebi.jpg){kind=link}
In the ongoing dispute between the Securities and Exchange Board of India (SEBI) and Sahara, the latter is seeking court approval to deposit property deeds with a nationalized bank. This move comes after the Supreme Court of India barred Sahara chief Subrata Roy from leaving the country last week due to failure in furnishing acceptable title deeds worth Rs 20,000 crore.
Court Order Details
On October 28, the Supreme Court ordered Sahara to provide valid title deeds of their assets equaling Rs 20,000 crore as a guarantee against funds raised through Optionally Fully Convertible Debentures (OFCD). However, SEBI found some deeds unacceptable due to the absence of original documents and discrepancies in valuations.
Sahara's Plan
Sahara is now preparing fresh title deeds from its total immovable assets worth approximately Rs 1,20,000 crore to comply with the court order. Meanwhile, the company’s deposit-taking business remains unaffected, currently standing at Rs 35,000 crore in outstanding public deposits.
Expansion Plans
Despite regulatory issues, Sahara is planning significant business expansions. The firm aims to hire about 48,000 mid-level executives over the next nine to ten months and around 250,000 lower-level employees over the next two and a half years. The projected revenue from new investments is expected to reach Rs 18,00,000 crore over the next eight to ten years.
Key Projects
- A mega township project on 500 acres
- A 500-bed hospitality project in West Bengal
- A dairy project in Madhya Pradesh
Asset Valuation Dispute
Sahara has accused SEBI of undervaluing its property deeds. For instance, properties valued by government circle rates at Rs 5 crore per acre and market prices of Rs 9.5 crore per acre were valued by SEBI at Rs 54 lakh per acre. According to Sahara, the fair value of all their assets is Rs 1,20,000 crore.
International Acquisitions
In previous years, Sahara expanded internationally by acquiring iconic hotels such as New York Plaza and Dream New York in 2012, and Grosvenor House in London in 2010.
Deposit with SEBI
Sahara has already deposited nearly Rs 22,000 crore with SEBI. The company continues to navigate through legal and regulatory hurdles while pursuing ambitious growth plans.