Subrata Roy compares Sebi with 'sarkari gunda
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| Photo: Parda Phash |
Kolkata, 30 November, 2013: Sahara Group will appeal to the Supreme Court to allow the organisation for submitting a new set of title deeds of properties to a nationalized bank instead of the Securites and Exchange Board of India (Sebi) as the capital market regulator has no experience in the valuation of property, said Sahara India Pariwar managing worker and chairman Subrata Roy here in the city.
Terming the market regulator as acting almost like 'sarkari gunda', he said, "This is a vengeance of a regulator of that stature to a corporate. Our request to the court will be to allow us to submit the papers to the nationalized banks like PNB directly. These banks have a system called trustee security."
Addressing a press conference here on Friday, the Sahara India supremo also made it clear that it has a trust deficit with Sebi by saying that the market regulator has come to a very low level while dealing with them (Sahara) which is not expected.
Fighting a long-running battle with Sebi, Sahara Group earlier said it will submit new title deeds for properties worth Rs 20,000 crore to the market regulator, which had termed assets offered earlier as highly over-valued and complained that it has not given original title deeds of some properties. The next hearing in Supreme Court is due on December 11.
Commenting on the Sebi allegation of over-valued property, Roy added that it had valued land as Rs 8.75 crore per acre and the government rate in the area itself is Rs 5 crore while the regulator has valued that for only Rs 54 lakh per acre. Sahara had submitted documents for two plots of land: a 106-acre plot in Versova, a western suburb of Mumbai, which it estimated at around Rs 19,000 crore, and a 200-acre plot in Vasai, which it estimated to be worth about Rs 1,000 crore.
Although Roy did not disclose the identity of the new set of properties, he was confidant that it would meet the criteria. "The face value of Sahara properties is Rs 1.2 lakh crore. So giving a new set of properties is not a problem," he added.
The Sahara managing worker also dismissed the Sebi allegation of furnishing incomplete documents of properties earlier offered by them. He added that owing to a flood in Versova area, some of the original title deeds were missing but they had submitted registered certified copies of those documents which is acceptable to court.
Commenting on the amount of public money with Sahara, including bank loan, he added that it will be not more than Rs 45,000 crore. "But the enterprise value of our assets is over Rs 3.2 lakh crore. So it is not a concern for us," he added. Roy also dismissed the possibility of selling its foreign hotels by saying that three foreign hotels will be valued at Rs 10,500 crore but it has no intention to sell that.
Fighting a long-running battle with Sebi, Sahara Group earlier said it will submit new title deeds for properties worth Rs 20,000 crore to the market regulator, which had termed assets offered earlier as highly over-valued and complained that it has not given original title deeds of some properties. The next hearing in Supreme Court is due on December 11.
Commenting on the Sebi allegation of over-valued property, Roy added that it had valued land as Rs 8.75 crore per acre and the government rate in the area itself is Rs 5 crore while the regulator has valued that for only Rs 54 lakh per acre. Sahara had submitted documents for two plots of land: a 106-acre plot in Versova, a western suburb of Mumbai, which it estimated at around Rs 19,000 crore, and a 200-acre plot in Vasai, which it estimated to be worth about Rs 1,000 crore.
Although Roy did not disclose the identity of the new set of properties, he was confidant that it would meet the criteria. "The face value of Sahara properties is Rs 1.2 lakh crore. So giving a new set of properties is not a problem," he added.
The Sahara managing worker also dismissed the Sebi allegation of furnishing incomplete documents of properties earlier offered by them. He added that owing to a flood in Versova area, some of the original title deeds were missing but they had submitted registered certified copies of those documents which is acceptable to court.
Commenting on the amount of public money with Sahara, including bank loan, he added that it will be not more than Rs 45,000 crore. "But the enterprise value of our assets is over Rs 3.2 lakh crore. So it is not a concern for us," he added. Roy also dismissed the possibility of selling its foreign hotels by saying that three foreign hotels will be valued at Rs 10,500 crore but it has no intention to sell that.
