Sahara may have to sell off assets to repay investors
Three days of the 90-day deadline given by the Supreme Court to the Sahara Group to repay over 22 million investors in its bonds have passed and it looks like the only way the Sahara Group can repay its debt is by selling off its assets.
The Supreme court had confirmed Securities and Exchange Board of India’s (Sebi) order to Sahara India Real Estate Corporation (SIREC) and Sahara Housing Investment Corporation (SHIC) to refund over Rs 24,000 crore collected from investors. The total repayment could exceed Rs 27,000 crore if the all the investors can prove their claim.
The favourable thing for Sahara is that it is one of the top realty owners in the country and can liquidate its real estate assets quickly if needed. Sahara Group affidavit submitted to the Supreme Court on 4 January 2012 showed that the group’s property assets seem to be on a par with DLF’s.
The market value of Aamby Valley city, a private hill station in Pune, is estimated to be valued at Rs 40,461 crore. The city is owned by a Sahara Group company Aamby Valley Ltd and its 100 percent subsidiary companies. Assets like these can bail out the business tycoon in these bleak times.
To read more real estate news:
Sahara ruling exposes regulators caught off guard
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[...] collected by the Sahara agents from the investors with interest. The case which was filed between Sahara India and Sebi stated that investors in the OFCD’s, especially Income Bond, Housing Bond and [...]
[...] group has a debt of over 22 million to repay to its investors and it looks like the only way the Sahara Group can repay its debt is by selling off its [...]
[...] Sahara may have to sell off assets to repay investors [...]