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SEBI Moves Contempt Plea Against Sahara For Obstructing Aamby Valley Auction

File photo of SEBI.

File photo of SEBI.

SEBI further said that Sahara was breaching the Supreme Court’s order to cooperate with Aamby Valley auction proceedings.

New Delhi: The Securities and Exchange Board of India (SEBI) has moved another contempt plea against Sahara group, alleging that the company is obstructing the auction of Aamby Valley.

SEBI further said that Sahara was breaching the Supreme Court’s order to cooperate with auction proceedings.

Earlier, only two potential bidders were believed to have shown initial interest for embattled Sahara group's super luxurious Aamby Valley resort town, which has been put up for a Supreme Court ordered auction by the official liquidator at a reserve price of Rs 37,392 crore.

Multiple real estate consultants have argued that it would be almost impossible for any single real estate player in India to buy such a huge property, a hill resort town in Maharashtra where a number of high profile celebrities are said to have invested, as the sector is going through a severe cash crunch and it is difficult for them to even arrange loans from banks.

Sahara, which pegs the project's market valuation at over Rs 1 lakh crore, had earlier said the liquidator has initiated only first two steps of the auction by issuing advertisement for interested bidders and verifying their KYC (Know Your Clients) and the sale would be withdrawn if Rs 1,500 crore is deposited before the next date of hearing in the Supreme Court.

The Supreme Court on September 11, however, refused to stay Aamby Valley auction, even as the group said Mauritius-based investor, Royale Partners Investment Fund has agreed to provide a loan of USD 1.6 billion (over Rs 10,000 crore) against security of 26 percent shares of its Aamby Valley project.
first published:October 10, 2017, 11:34 IST