Sahara properties to be auctioned at Rs 1,900 cr reserve price

Taking forward its task of recovering dues from Sahara, markets regulator Sebi will sell a total of 16 land parcels of the beleaguered group, through e-auction next month, at a reserve price of about Rs 1,900 crore (Rs 19 billion).

The auction would be conducted by SBI Capital Markets and HDFC Realty, which have been tasked to auction a total of 61 land parcels, on July 13 and July 15 respectively.

Besides, the two are already scheduled to e-auction five properties each on July 7 and July 4 respectively at a reserve price of nearly Rs 1,200 crore (Rs 12 billion).

At the reserve price, these auctions will take the total fund raising to at least Rs 3,100 crore (Rs 31 billion).

The Securities and Exchange Board of India roped in HDFC Realty and SBI Cap after being asked by the Supreme Court to initiate the process of selling Sahara properties whose titles have been deposited with it by the group.

HDFC Realty has been asked to auction a total of 31 land parcels at Rs 2,400 crore (Rs 24 billion), while SBI Cap has been tasked to auction another 30 land properties with an estimated market value of about Rs 4,100 crore (Rs 41 billion).

In a public notice issued today, SBI Cap said it will e-auction as many as eight land parcels on July 13 between 10.30 am and 11.30 am.

These properties will fetch over Rs 1,196 crore (Rs 11.96 billion) -- the reserve price.

HDFC Realty will also e-auction five land parcels on July 15 between 11 am and noon at a reserve price of over Rs 702 crore (Rs 7.02 billion), it said in a separate notice.

These properties are located in Rajasthan, Tamil Nadu, Madhya Pradesh, Uttar Pradesh, Bihar and Jharkhand.

The assets being sold are residential, agricultural and non-agricultural land.

Interested bidder can inspect these land parcels between June 16 and June 17.

As per the court directions, these properties cannot be sold at less than 90 per cent of circle rates.

After spending two years in jail, Sahara chief Subrata Roy is currently out on parole.

He was sent to jail on the orders of the Supreme Court in a long running dispute with Sebi.

Image: A man pedals his rickshaw past Sahara India Complex building in Noida on the outskirts of New Delhi. Photograph: Adnan Abidi/Files/Reuters