E-auctioning of Sahara properties to fetch approx Rs. 1,200 crores

HDFC Realty and SBI Capital Markets will have their task cut out to raise approximately Rs. 1,200 crores by selling 4,700 acres owned by Sahara Group as ordered by SEBI due to sluggish market conditions in real estate markets in India. 

SEBI appointed HFDC Realty and SBI Capital markets post directives being issued by the Supreme Court on March 29 asking the regulator to initiate the sale of Sahara Group properties across India. The sale proceeds should be used to raise the bail money for jailed chief of the multi-diversified group, Subroto Roy amounting to Rs. 10,000 crores. 

The identified properties including both agriculture and non-agriculture land which are located  in Andhra Pradesh, Tamil Nadu, Madhya Pradesh, Chhattisgarh, Gujarat and Uttar Pradesh. HDFC Realty and SBI Capital Markets will have to ensure that the properties are sold not below the 90 per cent of their circle rate. Circle rate is nothing but the minimum price at which the sale or transfer of a property can take place. 

SEBI has communicated to the apex court of the sale completion in four months and the asset sale is being supervised by retired Supreme Court Judge  B.N. Agrawal. B.N.Agrawal is also responsible for the smooth process of Sahara returning the money to its investors. 

Subroto Roy was sent to jail following orders of Supreme Court in a long running dispute with SEBI. Sahara chief Subroto Roy is out on parole after spending two years in jail.