Supreme Court of India has allowed SEBI – Securities and Exchange Board of India to start the selling of Sahara’s Properties/assets to refund millions of investors. Its founder Subrata Roy was arrested in March 2014 after the company failed to comply with a court order to refund money raised from millions of small investors by selling them bonds later ruled to be illegal.
Sahara was the main sponsor of Indian Cricket Team and it has major hotels in foreign countries along with the Plaza in New York and the Grosvenor House in London. In June 2015, Supreme Court said the group needed to repay the entire 360 billion rupees, the court says it owes investors in illegal bonds.
Subrata Roy owned Sahara Group has submitted a list of 86 properties which it claims are worth Rs 40,000 crore but they claim that it has not been able to find buyers for the properties. Sahara Group has been engaged in a long-running regulatory and legal battle with SEBI ever since the capital market regulator ordered refund by two Sahara entities.
The Supreme Court has also said that SEBI should not sell the properties for less than 90 per cent of the circle rate. If the bids are below 90 per cent of the circle rate, the regulator will have to take permission of the court.