Selling properties of Sahara group will be a "herculean task", market regulator Sebi's lawyer Arvind Datar said today, citing example of the recent no-show by bidders at an auction for Vijay Mallya's Kingfisher House building
New Delhi: Selling properties of Sahara group will be a "herculean task", market regulator Sebi's lawyer Arvind Datar said today, citing example of the recent no-show by bidders at an auction for Vijay Mallya's Kingfisher House building.
To raise the bail money amount for the release of Sahara's chief Subrata Roy, Supreme Court has asked Sebi to initiate the process of selling 87 "unencumbered" properties of Sahara group, whose title deeds are with the regulator.
Datar, who has been Sebi's counsel in the long drawn legal battle with Sahara group, said it would be a herculean task to sell the properties.
"What I am worried is that there are several properties worth approximately Rs 40,000 crore. Now we have to go for title scrutiny, we have to get all that done and that is a herculean task," he said.
Responding to a query on whether there is a time line for assets sale, Datar said he really does not know.
"For example, Mallya's Kingfisher building has not been sold... I have suggested that let's not go into valuations, what is the circle rate and if I am getting a value of 90 per cent, I have the liberty subject to the judge's approval to sell the property. I have no time line," he said.
Banks recently put to auction Kingfisher House, the erstwhile headquarters of the long-grounded Kingfisher Airlines, as part of their efforts to recover dues totalling over Rs 9,000 crore from Vijay Mallya and his group firms. But, no bid came through and the banks are still working on a fresh process to sell the property, whose base prices was pegged at Rs 150 crore.
Datar was interacting with the audience after delivering a lecture on 'Sahara vs Sebi' case, organised by Vidhi Centre for Legal Policy here.
Regarding progress on Sebi's refund process for Sahara investors, as directed by Supreme Court, he said there are three crore total depositors but refund claims have been made by 5,000 depositors.
"The total amount refunded by Sebi is Rs 55 crore as I speak," he added.