Sahara has no money to bail out Roy but bids Rs 6000 crore for Grosvenor House

Mumbai(web team): Sahara Group, whose chief, Subrata Roy is in Tihar Jail in Delhi has bid to gain control of Grosvenor House. The Group bought the hotel in 2010 but lost control earlier this year as it defaulted on a loan.

Bank of China (BOC) then put the hotel on the block.

As per a report in the Economic Times, Sahara Group has emerged as one of the bidders for the hotel. The report stated that the bank has received bids in the range of 600-625 million pounds which roughly translates to Rs 6000 crore.

Incidentally, Subrata Roy has been lodged in jail since last year after the Group failed to submit a bail bond of Rs 10,000 crore set by the Supreme Court.

The run-in with Securities and Exchange Board of India (SEBI) made BOC to ask for its money back from Sahara Group.

Failing which, the bank took custody of the hotel and invited bids for the same, including the Dream Downtown in New York and The Plaza.

Also Read: The murky Subrata ‘Sahara’ Roy drama

The report said that in 2013-14 Sahara had gotten bids which were close to 900 million pounds but the reckless attitude of the Group squandered away the opportunity.

To raise Rs 10,000 crore bail money, Supreme Court has permitted Subrata Roy to use Tihar Jail’s facilities to hold meetings with prospective buyers.

However, no deal has been finalised yet.

The company came close to sealing the deal earlier this year with Mirach Capital but that too ended in both parties threatening to sue each other.

Mirach had offered $2 billion to buy the hotels and give the much needed money to Sahara.

Posted by on May 28, 2015. Filed under Editorial. You can follow any responses to this entry through the RSS 2.0. Both comments and pings are currently closed.