The Supreme Court today granted the Sahara Group an additional three months to furnish a final proposal to secure bail for its chief Subrata Roy who has been languishing in Tihar jail for the last one year.
The apex court granted the conglomerate three more months to gather Rs10,000 crore by selling parts of its luxury township Aamby Valley and other properties to secure Subrata Roy's release.
But raising funds by selling local properties such as the Aamby Valley township outside Mumbai, which has luxury villas and a golf course, will be tough in a market that has yet to recover from a painful economic slowdown.
In its last attempt, Sahara said it was close to finalising a deal with U.-based investor Mirach Capital to raise money by taking a loan against its overseas hotels including the Plaza, but those talks fell through.
Sahara has made several failed attempts to raise $1.6 billion in bail money. Roy was jailed after Sahara failed to comply with a court order to refund billions of dollars to investors in a bond programme that was ruled illegal.
Roy is still in jail. PTI image
The Supreme Court last week gave Sahara, a sprawling conglomerate that ranges from property to Formula One motor racing, a final chance to raise funds in order to bail out Roy.
If it fails to raise the cash in this period, the court could appoint a receiver to auction its assets, which include properties such as New York's Plaza hotel and tracts of land in India. This could prove a challenge as industry analysts say a fire sale may not raise enough to free Roy and get Sahara back on its feet.
With inputs from Reuters
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