Subrata Roy and his Sahara Group has been embroiled in logjams with regulatory body Sebi since 2009. Ultimately this led to his arrest in 2014 where he still languishes.
The Supreme Court set a mammoth bail bond of $1.6 billion if he wants a release. The Court allowed him to use jail premises to negotiate deals to sell his hotel properties and raise the bail money.
However, with Bank of America saying it has nothing to do with Sahara’s deal with Mirach Capital, Sahara accused Mirach of forgery. Mirach has hit back denying the accusation and still ready to buy Sahara’s overseas hotels and give him the money needed to secure his exit from the jail for the time being. Sahara, however, has initiated legal action and is back in the market for a fresh deal for its hotels. The bail money remains elusive and Roy remains in jail.
The Sahara story since its beginning in 2009.
September 2009: Sahara Prime City decided to raise money from public. Files draft prospectus with SEBI.
October 2009: Sahara India Real Estate Corporation and Sahara Housing Investment Corporation submit their draft prospectuses with Registrar of Companies.
December 2009: An investor awareness group files complaint against the above two companies for illegally raising money using Optionally Fully Convertible Debentures (OFCD).
November 2010: SEBI asks Sahara to return over Rs 25,000 crore collected from crores of investors.
December 2010: Sahara Group moves Allahabad High Court seeking stay on SEBI order.
January 2011: SEBI moves to Supreme Court asking details of investors in the two Group companies that raised money via OFCDs.
April 2011: Sahara moves SC as Allahabad High Court vacates stay order.
June 2011: SEBI passes a final order to bring in effect the refund.
June 2011: Sahara approaches Securities Appellate Tribunal (SAT).
October 2011: SAT takes SEBI’s side and asks Sahara to refund the money to its investors.
November 2011: Sahara knocks on the doors of the Supreme Court of India.
August 2012: SC asks Sahara to refund money to nearly 3 crore investors.
December 2012: The Court asks Sahara to deposit over Rs 24,000 crore, in installments, with SEBI to initiate refunds.
February 2013: Sahara fails to comply with the SC order; SEBI freezes bank accounts and properties of the companies.
March 2013: SEBI files case in the SC asking for detention of Subrata Roy and two others.
April 2013: Subrata Roy appears before SEBI.
November 2013: The Supreme Court bars Subrata Roy from leaving the country.
January 2014: SC agrees to hear Sahara’s plea to travel abroad.
January 2014: SC asks Sahara to discloses identities of its 3 crore investors in the OFCDs.
February 2014: The Supreme Court asks Subrata Roy to appear before the court.
February 2014: Non-bailable warrant issued against Subrata Roy as he fails to follow SC’s ask.
February 2014: Subrata Roy is arrested in Lucknow.
March 2014: Sahara makes a new offer to SEBI over Rs 37,000 crore repayments.
March 2014: Subrata Roy turns to his employees and well-wishers to raise the bail money.
April 2014: Sahara offers to pay Rs 3000 crore in four days of Roy’s release.
July 2014: SC rejects Sahara’s offer.
July 2014: Roy seeks permission to move to Tihar Jail’s guest house to hold negotiations regarding selling Sahara’s overseas hotels to raise bail money.
November 2014: Income Tax department raids Sahara offices, says recovered Rs 135 crore in unaccounted money.
December 2014: SC allows Sahara Group to sell properties worth Rs 2700 crore in various cities in India.
January 2015: SC allows Sahara to seek loan from abroad to pay Roy’s bail money.
January 2015: Sahara says it is close to a deal with Mirach Capital for raising $2 billion. The parties say bank of America is involved in the deal.
February 2015: Bank of America says it has nothing to do with the deal between Sahara and Mirach Capital.
February 2015: Sahara accuses Mirach Capital of forgery, threatens legal action.
February 2015: Mirach Capital denies any wrongdoing, accuses Sahara of walking out on the $2 billion deal.
February 2015: Sahara initiates legal action against Mirach Capital.
Meanwhile, Subrata Roy still cools his heels in Tihar Jail.