Mirach fiasco: Sahara explores fresh options to raise funds

With the much-hyped USD 2-billion funding by Mirach falling apart over "forgery" allegations, Sahara has begun exploring fresh options to secure bail for its chief Subrata Roy, even as the US firm hit back claiming that the Indian group itself scuttled the deal.
Sources said Sahara group has begun looking for new investors to garner necessary funds and the Mirach deal was off the table, while it would soon take a call on initiating legal action against Mirach Capital, run by Indian-origin businessman Saransh Sharma.
Mirach also said the syndicated loan package offered to Sahara was "no longer on the table", but it offered a complete buyout of Sahara's three iconic hotels -- Plaza and Dream Downtown in New York, as also Grosvenor House in London.

Sharma, who himself is facing pending lawsuits in the US and in the past has reportedly admitted to stealing database of a former employer, rejected the allegations of forgery in this loan deal and accused Sahara group of repeatedly undermining the transaction, while wasting the time of "its investors, Sebi and the Supreme Court".
He, however, did not comment specifically on charges of providing a "forged" Bank of America letter, which was placed before the Supreme Court to guarantee the deal.
The purported transaction was to involve transfer of loans on Sahara's three iconic overseas hotels -- two in New York and one in London -- to a syndicate of investors, for which Mirach had claimed to have initially deposited USD 1.05 billion in a Bank of America account. The financing package was to be expanded to about USD 2 billion eventually.

Sahara was looking to use part of these funds to ensure release of Roy and his two colleagues from Tihar Jail, where they have been lodged for almost a year in a case relating to repayment of investors' money totalling over Rs 20,000 crore.
Bank of America yesterday said it was not at all involved in any such transaction, following which the entire financing arrangement began unravelling and resulted in allegations of "forgery" and subsequent counter-allegations.
After BofA's disclosure, Mirach said it has "determined" a bank for the funding plan but did not name the same.