Have sold off London hotel to pay dues to SEBI: Sahara’s Subrata Roy to SC
Roy is out on bail after his arrest in March, 2014, for failing to comply with a court order to refund 24,000 crore to investors in outlawed bonds.india Updated: Jun 19, 2017 22:57 IST
The iconic Grosvenor House hotel in London will soon have a new owner.
Embattled media and real estate tycoon Subrata Roy told the Supreme Court on Monday he has sold off the hotel to pay off its dues to market regulator, the Securities and Exchange Board of India (SEBI). He was present in the court.
Roy is out on bail after his arrest in March, 2014, for failing to comply with a court order to refund 24,000 crore to investors in outlawed bonds.
Sahara advocate Kapil Sibal told the court the hotel in central London was sold off to GH Equity Limited UK a few days ago.
While Sibal did not disclose the exact amount for which the hotel was sold, he said 75 million pounds (about Rs 615 crore) were being brought to India.
At least two UK-based business websites showed GH Equity Limited UK was incorporated on June 13.
Sahara bought the 494-room Grosvenor House in 2010 for 470 million pounds ($722 million), giving a toehold in global hospitality business to the company that has assets in a Formula One team to TV channels.
Last year, the Sahara group told the top court that it was close to sealing a deal on the hotel with Qatar.
The court extended till July 4 the time for Roy to deposit Rs 709.82 crore, out of Rs 1,500 crore which was to be paid by June 15, with a warning that failure to pay the
remainder may again land him in jail.
“If the balance amount is not paid by that date, we will be compelled to send the contemnor (Roy) to the custody and we are sure he shall not give rise to such an occasion,” a bench of justices Dipak Misra and Ranjan Gogoi said while extending its interim order granting bail to Roy till July 5.
Sibal was seeking permission for inward remittance of the sale amount to the SEBI- Sahara account and an extension of time to deposit the money.
The bench, however, rejected Roy’s plea that he be allowed to sell land, measuring 87.03 acres, in certain villages of Haridwar in Uttarakhand, for Rs 109.75 crore as the
amount was 62 per cent of circle rate prevalent in the area.
“The said amount is 62 per cent of the circle rate and, thereby, less than 38 per cent of the circle rate. Permission is sought to sell the property at that rate. As advised at
present, we are not inclined to grant the said permission,” the bench said.
(With agency inputs)