Mirach calls off Sahara loan deal

Mirach calls off Sahara loan deal

Mirach calls off Sahara loan deal

US-based Mirach Capital Group on Wednesday formally called off its $2.05 billion loan financing for Saharas and returned the entire due diligence fee of $2.625 million to the crisis-hit group.

The US-based firm, however, maintained that Sahara remains an “unwilling seller” for the three overseas properties — The Plaza and Dream Downtown in New York and the Grosvenor House in London.

Run by a person of Indian origin, Saransh Sharma, Mirach had emerged as a white-knight in Sahara’s efforts to secure release of its jailed chief Subrata Roy till its syndicate loan offer got embroiled in an “forged letter” controversy.

Mirach said it has remitted $2.625 million to the Sebi-Sahara Fund while ending the proposed deal, which involved transfer of loans taken by Sahara from Bank of China for these hotels to a clutch of investors.

Maintaining that it has incurred costs and was entitled to various fees, Mirach said it has returned the money to “wipe the slate clean” in the wake of “unfounded allegations”.

The US-based group further said that its CEO Sharma has also written to Sebi, the amicus curiae in the case and Sahara’s representatives about the remittance.

Meanwhile, the Supreme Court was informed on Wednesday that the Mirach deal has failed. In the wake of these developments, the apex court favoured making fresh attempts to sell Sahara group’s overseas properties.

A bench presided over by Justice T S Thakur told Sahara group and senior advocate Shekhar Naphade, acting as amicus curiae in the case, to suggest an alternate mode of dealing with Sahara’s properties, including its hotels abroad. Naphade submitted before the bench that there were conflicting claims being made by Sahara and Mirach on the issue.

On the other hand, Sahara’s counsel claimed that a letter purportedly from Bank of America had been forged. Senior advocate representing the group contended that they had been “victimised” by Mirach.

On this, the bench asked Sahara to submit its grievances to the court and fixed the matter for hearing on February 20. The loan would have helped secure bail for the group’s jailed chief, who has been told to deposit Rs 10,000 crore, including Rs 5,000 crore as bank guarantee.

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