Sahara Chief to Stay in Jail as $2 Billion Property Deal Called Off

In a blow for Sahara, the US-based Mirach Capital called off its $2 billion loan deal which would have helped the Indian conglomerate raise bail money for its jailed chief Subrata Roy.

Mr Roy has been in Delhi's Tihar Jail since March last year and his bail amount was fixed at Rs 10,000 crore by the Supreme Court. The Mirach loan deal was supposed to involve the transfer of loans taken by Sahara from Bank of China for its three overseas hotels - The Plaza and Dream Downtown in New York and the Grosvenor House in London - to a new syndicate of investors.

(Read: Mirach Calls Off $2 Billion Sahara Loan Deal)

The Supreme Court has also criticised Sahara group for the delay in sale of overseas properties. The top court had permitted Sahara to sell its overseas properties to enable it to pay around Rs 26,000 crore related to refund of its investors.

The Supreme Court now wants an asset management agency to handle the sale of its overseas properties.

"Everything is getting into some problem. We can't be stuck in this kind of situation. We will ask the committee headed by Justice BN Aggarwal to examine this," the top court told Sahara.

The court also asked the amicus curiae Shekar Nafade to examine how the sale to property can be handed over to an asset management agency.

Sahara and Mirach Capital have accused one another for scuttling the deal. Both Sahara and Mirach Capital are now engaged in a war of words over the failure of the deal. Sahara has accused Mirach of forging bank letters. The US company said that Sahara is deliberately scuttling the deal.

"People who are offering Rs 5000-10,000 crores are producing forged letters. What kind of people are they?" the top court asked Sahara.

Sahara lawyers told court that the company is a victim and it has filed an FIR. Sahara will file an affidavit about all facts, its lawyers told the court. Sahara also informed that it got required the Reserve Bank's permission for selling overseas properties.

Mr Nafade, the amicus curiae in the Sahara case, also criticised the company saying that it is difficult to believe that a company with such a vast experience, can it be taken for a ride.

The top court asked Sahara to file its affidavit and then it will take up the case for hearing.