Sahara gets Rs 4,860 crore tax demand
Jul 07, 2014
Source : The Times of India
DELHI: The income tax department on Thursday raised an interim demand of Rs 4,860 crore on the Sahara group even as it is busy selling off assets and mopping up bank accounts to arrange for Rs 10,000 crore to secure the release of chairman Subrata Roy and two directors, detained in jail since March 4.

The I-T department made this disclosure before a bench of Justices T S Thakur, A R Dave and A K Sikri, when it was discussing with counsel for Sahara and market regulator Sebi about the possible safeguards required to be put in place for sale of the group's three hotels abroad — Grosvenor House in London and two New York hotels, the Dreams Downtown and the Plaza.

Advocate Arijit Prasad said the I-T department has filed an application detailing the interim tax demand of Rs 4,860 crore raised on Sahara Real Estate and Sahara Housing for the assessment years 2009-10 and 2010-11. The court said it would be heard as and when the registry lists it.

Sahara group strongly opposed the I-T department's application. Senior advocate Rajeev Dhavan said, "We are already in big trouble. Why are they here to make it worse?" The bench said in a lighter vein, "You have to take the bull by its horn when you cannot escape." Dhavan replied, "The real bull is Sebi and we will take it on."

Dhavan's confession presented a true picture of the financial constraints faced by Sahara, which has already deposited Rs 3,117 crore in cash with Sebi after selling off a property in Ahmedabad. There are eight more properties which could fetch the group Rs 3,800 crore.

Sale of the three hotels in London and New York would give the group an additional Rs 5,000 crore to furnish bank guarantee and leave a surplus. Dhavan said the group needed Rs 1,200 crore urgently to pay its employees, who have not been paid salaries for three months.

He said the quickest way to tide over the financial crunch was to sell off the foreign hotels. But to make the deals with potential buyers lucrative and worth the effort, he requested the court to release Roy for an interim period of 40 days.

"It is one thing when the management negotiates with prospective buyers and quite another when the boss does it. If within 40 days the deals don't materialize and the money is not deposited with Sebi, the court can put him back in jail," Dhavan said.

The bench asked Sebi counsel Pratap Venugopal to file response by Friday on two issues - release of Roy for 40 days to negotiate the sale of hotels in London and New York and safeguards to be put in place to ensure transparency and fairness in these sales.

Dhavan requested the court not to insist on further impediments on the sale of foreign hotels as these would bring down their price. He said the creditor, Bank of China, had assessed the price of the hotels through reputed valuers and there was no underhand deal involved in it. The hearing will resume on Friday.

The SC had sent Roy and two directors to jail after the group repeatedly failed to honour its directions to deposit Rs 24,000 crore with interest with Sebi. The court had asked the market regulator to verify the three crore investors from whom the money was illegally raised through one-time fully convertible debentures.

Sahara, through counsel Keshav Mohan, had told the court that the group had earlier deposited Rs 5,120 crore. Mohan said that of the Rs 5,000 crore cash, the group had deposited Rs 3,117 crore and the rest would be deposited as soon as possible.


Latest Realty News

Budget 2014: 5 changes to improve housing and real estate sector
Jul 07, 2014
DELHI: The real estate sector has been the backbone of the Indian economy and has been a major contributor in the economic growth. The approach followed by real estate players have been instrumental in changing the face of the country, from being under-developed to accelerating its way to a developed country. The sector contributes about 6.3 percent to the nation's GDP (2012-13) is a major source of revenue for Central, state and local governments and provides employment to more than 50 million
SIT to probe Chennai building collapse
Jul 07, 2014
CHENNAI: The Tamil Nadu government on Sunday constituted a special investigation team (SIT) comprising experts in engineering and architecture to conduct a probe into the June 28 multi-storey building collapse in Chennai that claimed 61 lives. The government had earlier ordered a probe by a retired high court judge. In a statement, chief minister J Jayalalithaa said the SIT would be monitored by the Chennai police commissioner and headed by a joint commissioner. " There is a requirement of techn
Delhi tops nation in property frauds
Jul 07, 2014
DELHI: The capital tops the list in terms of cases related to property fraud and misappropriation among all states and union territories in the country, according to the National Crime Records Bureau (NCRB).
Govt orders cost audit for real estate, hospitals and educational institutions
Jul 07, 2014
DELHI: The government on Monday ordered maintenance of cost records and audit for real estate companies, hospitals and educational institutions to drive in transparency and keep a check on their costing. The move will bring in the much-required transparency in fixing of prices in areas like housing and treatment costs at hospitals, while keeping a check on the fee charged by private educational institutions.
Gurgaon builder sells off project land, investors cry foul
Jul 07, 2014
DELHI: More than 400 investors from Delhi and NCR, who had booked flats in a Gurgaon housing project and deposited 25% of the cost upfront, are demanding investigation into what they call a multi-crore fraud because the developer had allegedly sold off the project land.
Budget 2014: Suggested amendments for real estate
Jul 07, 2014
DELHI: The real estate sector happens to be one of the very important sectors for the overall growth of the economy. Since the new government, led by Prime Minister Narendra Modi, has taken a pragmatic view of providing housing to all by 2020, it becomes very important that certain amendments are made in the law for the real estate sector.
Housing Prices Can Fall on Transparency, Timely Approvals: HDFC
Jun 20, 2014
Calling for major reforms in housing sector, HDFC chairman Deepak Parekh has said transparency and timely approvals from different authorities can reduce home prices by almost 20 per cent.
Brahma Management to invest Rs 3,000 crore in Indian real estate sector
Jun 20, 2014
Nine years after it was formed, New York-based Brahma Management has lined up big investments for the Indian real estate market . Brahma, an FDI-funded investment and asset management company, has already invested around Rs 2,500 crore in the sector and has plans to put in another Rs 3,000 crore over the next two years.
Mahindra Lifespaces ventures into affordable housing segment
Jun 20, 2014
Mahindra Lifespaces Developers, the real estate arm of the Mahindra group, on Monday launched its new business vertical 'Happinest' that will focus on developing affordable housing projects.
Delhi Development Authority to roll out 'largest-ever' housing scheme by July end.
Jun 17, 2014
NEW DELHI: The largest-ever housing scheme of Delhi Development Authority will be rolled out for city- dwellers by July end, offering over 26,000 flats across various categories with most of them being built with "green technology", a top official of the housing body today said.

Latest Realty News Of State

Realty Talk's