Auction begins for Sahara land parcels

An e-auction began on July 4  for sale of land parcels belonging to beleaguered Sahara group for recovery of funds by the markets regulator SEBI, amid concerns that sluggish market conditions might make it hard to attract buyers.

Five land parcels were put on the block today by HDFC Realty at a reserve price of Rs 722 crore, while five other properties are scheduled to be auctioned by SBI Caps on July 7 at a reserve price of Rs 470 crore.

While there was no official word from either HDFC Realty or any other concerned entity on results of today's auction, industry sources said it would be difficult in the prevailing scenario to get buyers and right valuation.

HDFC Realty and SBI Caps have been mandated by SEBI to auction a total of of 61 land parcels for an estimated market value of Rs 6,500 crore.

HDFC Realty is auctioning a total of 31 land parcels for an estimated value of Rs 2,400 crore, while SBI Cap has been tasked to auction 30 land parcels with an estimated market value of about Rs 4,100 crore.

The Securities and Exchange Board of India (SEBI) roped in HDFC Realty and SBI Cap after being asked by the Supreme Court to initiate the process of selling Sahara properties whose titles have been deposited with it by the group.

Following a go-ahead from the Court, the two entities put in place the necessary mechanism to auction these properties.

These properties are spread across the country and mostly include land parcels. As per the court directions, they cannot be sold at less than 90 per cent of the circle rates.

HDFC Realty has scheduled its further auctions on July 15, July 18 and July 21 for eight properties each. Besides, SBI Caps has so far lined up separate auctions on July 7, July 13 and July 20.

For the upcoming auction on July 7, SBI Caps has put on block five land parcels at a reserve price of Rs 470 crore.

After spending two years in jail, Sahara chief Subrata Roy is currently out on parole. He was sent to jail on the orders of the Supreme Court in a long-running dispute with SEBI.