Free Press Journal

Sahara boss to stay in jail as $2 bn deal is called off


New York/New Delhi: The US-based Mirach Capital on Wednesday formally called off its $ 2 billion loan financing for Sahara which would have helped the Indian conglomerate raise bail money for its jailed chief Subrata Roy.

Roy is 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.

This deal has fallen through but Mirach has offered a complete buyout of Sahara’s three iconic hotels for which the latter is unwilling. Run by Indian-origin Saransh Sharma, Mirach had emerged as a white-knight in Sahara’s efforts to secure release of its jailed chief till its syndicate loan offer got embroiled in an alleged “forged letter” controversy.

The forged letter was purportedly from Bank of America and claimed to provide guarantees worth USD 1.05 billion for the Mirach-Sahara deal. Bank of America, however, disclosed that it was not involved in the deal as was being claimed. Mirach has denied the forgery allegations.

The Supreme Court was, meanwhile, informed on Wednesday that the Mirach deal has failed. The court had given time till February 20 for the deal. Now, the court has asked the Sahara Group to explain by way of affidavit the entire development which has resulted in failure of the deal.