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Sahara’s Aamby Valley put up for auction, reserve price fixed at Rs 37,392 crore

The development came three days after the Supreme Court declined to entertain the Sahara Group’s plea to postpone auction of the property in Western Ghats in Pune district.

india Updated: Aug 14, 2017 17:56 IST
Ashok Bagriya
Ashok Bagriya
Hindustan Times, New Delhi
Sahara Group,Subrata Roy,Bombay high court
The Aamby Valley property comprises an integrated hill-city township called Aamby Valley City Development, which was the first of its kind Megalopolis, spread over 6,761.64 acres.(HT File Photo)

Subrata Roy-owned Sahara Group’s Aamby Valley city in Maharashtra was put up for auction on Monday in keeping with the Supreme Court order for its sale to recover the money owed to investors.

The official liquidator, attached to the Bombay high court, published a notice inviting bids for the property located in the lush green Sahyadri mountain ranges close to the popular hill station of Lonavala. The reserve price has been fixed at Rs 37,392 crore.

“The ultra-exclusive chartered city has residential options ranging from the timber chalets to fabulously modern and customised villas in distinct architectural styles and several amenities such as golf course, airport, hospital, adventure sports, retail, entertainment, international school and hospitality,” the notice said.

Up for bidding are 6,761.64-acre Aamby Valley City Development, 1,409.87 acre of land surrounding the project and another 321.66 acre in the adjoining Satara district.

The auction will be conducted in two phases over a period of two days and bids can be submitted in sealed envelopes from September 21 to October 3.

The notice comes four days after the Supreme Court refused Roy’s request to put off the auction till September 16.

Roy sought permission for an agreement with Victor Koenig UK Limited for an investment of US $ 1.67 billion in Aamby Valley. The court allowed Sahara to begin negotiations but refused to put the auction on hold.

Sahara can still stall the proceedings if it deposits Rs 1,500 crore before September 7.

The court on Thursday said the auction would go on but if the company were to put Rs 1,500 crore into the SEBI-Sahara refund account by September 7, it could pass an appropriate order.

There were several steps before the auction could take place, Sahara said in a statement. The Supreme Court had approved the official liquidator to execute initial two steps. “The first step is to issue an advertisement for seeking an invitation of the interested parties and the second step is of verifying the KYC of the interested parties. Beyond these, Supreme Court has not directed any steps till the date of next hearing,” it said.

The auction is the fallout of the court’s April 27 order that found Sahara guilty of contempt in a dispute with the Securities and Exchange Board of India.

Sahara has been ordered to refund millions of small investors who put money in its two schemes that were declared illegal by the market regulator.

The company has so far paid a little over Rs 11,000 crore and wanted time till July 2019 to deposit remaining Rs 14,779 crore with Sebi.

First Published: Aug 14, 2017 10:25 IST