Sahara to sue Mirach, eyes new deal

Sahara on Thursday said it has initiated legal action against Mirach Capital for cheating and forgery, for the latter’s failure to honour the $2.05-billion loan arrangement between the two companies.

Sahara on Thursday said it has initiated legal action against Mirach Capital for cheating and forgery, for the latter’s failure to honour the $2.05-billion loan arrangement between the two companies.

The crisis-hit Sahara is brokering deals to shore up funds worth over `24,000 crore to repay investors. The firm said it is now working on a new deal to raise funds to secure bail for its jailed chief Subrata Roy.

Mirach had on Wednesday called off the loan financing deal and said it had returned the entire $2.625-million diligence fee. It had also accused Sahara of being an “unwilling seller” for the three overseas properties —The Plaza and Dream Downtown in New York and the Grosvenor House in London.

“Mirach Capital Group (MCG)’s and its CEO Saransh Sharma’s criminal conduct and lack of financial capabilities to honour such huge commitments has led to the breaking down of its deal with Sahara, leading to the loss of precious time, resources and position of Sahara,” a Sahara spokesperson said. “In lieu to this, Sahara is now taking legal actions both of civil and criminal nature against such gross criminal conduct of MCG and their officers, both in India as well as in the US. A FIR has already been filed.”

The loan deal between Sahara and Mirach fell apart after Bank of America, which was said to have provided guarantees worth $1.05 billion, disclosed that it was not part of the deal. Sahara also said that its own due diligence had found that the letter assuring the guarantee from the bank had been forged.