Sahara sold business jet without informing SC, say sources

Q: What implications will this have?

A: This could have severe implications on the next date of hearing.

There are three elements essentially. The first one we understand in December of last year an airbus plane had been sold by Sahara Group subsidiary and this was an outcome of a pending litigation in the United States.

The second element was that of the sale proceeds, the sale being done for an undisclosed amount. Of the sale proceeds USD 30 million were lodged in a receivers account on account of that same pending litigation which was again in the United States.

Third part is the interesting part where Sahara had sought a loan of USD 35 million from Mirach Capital giving this USD 30 million account as well as two other planes as security. Now this raises a number of questions, one, why was the plane sold for what considerations, how were the sale proceeds employed. Also importantly what fate awaits this USD 30 million account, what happens to these funds here? Also why was USD 35 million loan sought when at that point Mirach was onboard for USD 2 billion lifeline as far as Sahara is concerned.

So, a number of questions being raised here. We reached out to the Sahara Group, they haven’t responded to our various detailed questions. What we understand as of now is that the market regulator appears to have taken cognizance and will be raising this issue at the next date of hearing which is March 13. So, clearly difficult questions await Subrata Roy as well as Sahara.