Mirach Capital Denies Accusations, Hits Out At Sahara

06/02/2015 12:47 PM IST | Updated 15/07/2016 8:24 AM IST
Hindustan Times via Getty Images
NEW DELHI, INDIA - MARCH 4: Sahara Chairman Subrata Roy arrives at the Supreme Court on March 4, 2014 in New Delhi, India. An attacker, Manoj Sharma, claiming to be a lawyer from Gwalior, Madhya Pradesh managed to get close to Roy in the crowd and threw black ink on him. He was later detained and led away. Subrata Roy, head of the Sahara India conglomerate was accused by India’s regulatory body SEBI of raising nearly 200 billion rupees ($3.2 billion) through bonds that were later found to be illegal. (Photo by Arun Sharma/Hindustan Times via Getty Images)

Hitting back at Sahara, US-based Mirach Capital on Friday rejected accusations of indulging in forgery and counter-accused the Indian group of walking out of the Rs.2 billion loan arrangement fearing repayment defaults.

Mirach refused to comment on earlier claims that the banker arranged by it for the deal was Bank of America Corp., whose denial being party to any such transaction blew the lid on the alleged forgery. However, a non-defiant Mirach offered a full buyout of Sahara’s three iconic hotels in the US and the UK.

In a statement, Mirach CEO Saransh Sharma steered clear of the issue of a Bank of America letter it furnished as guarantee of funds in an escrow account for Sahara, which then placed it before the Supreme Court but later found it to be “forged”. He further accused Sahara of repeatedly undermining a transaction for sale of its properties and said it “wasted” the time of its investors as also that of Securities and Exchange Board of India (Sebi) and the courts. “In light of recent comments made by Sahara, we would like to offer the following details in an effort to provide transparency and give a comprehensive view of what has transpired to date.

“Mirach has faced a number of challenges in closing this transaction; nevertheless, we remain steadfast and are ready, willing, and able to acquire these assets,” he added. Sharma further said: “The Amicus Curiae, Sahara’s legal counsel, Subrata Roy, and other essential parties, including our investors, have been made privy to the details indicating our willingness and ability to successfully execute this transaction.

“In spite of the court mandates to raise bail, Sahara has always been and continues to be an unwilling seller of these assets. They have thus repeatedly acted to undermine the transaction, and thereby waste the time of our investors, Sebi, and the honourable Supreme Court of India. “The dangerous allegations made by Sahara are indicative of a direct intent to destabilise a deal structure that, given its high rate of return, would benefit Mirach and its investors.”

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