Sahara declares war on Subrata Roy's saviour Mirach Capital Group

In a perplexing turnaround, the Sahara Group filed an affidavit in the Supreme Court (SC) on Monday claiming that Mirach Capital Group, which was seen as the white knight set to bail out chairman Subrata Roy, was actually out to dupe and defraud it.

Roy, who is in Tihar Jail on contempt-of-court charges and needs to post $1.6 billion for bail, will have to remain there for the time being.

Sahara and Mirach Capital Group-'MCH' of USA had entered into agreements of financial arrangements to arrange the bail amount for release of Roy and his two colleagues on the security strength of three hotels in London and New York.

Saransh Sharma, chief executive officer and authorised officer of Mirach, not only entered into the agreements with Sahara but also met the amicus curiae and senior counsel for the Securities and Exchange Board of India to assure them about the veracity of the transaction and was personally present in the SC on last date of hearing, January 9, to understand the proceedings.

Further, the transaction had got the SC's approval when MCH filed a letter of Bank of America (BofA) showing that MCH had blocked sufficient funds with the bank for the transaction. On insistence of MCH, an IA for clarification was also filed before the SC.

MCH meanwhile also received crores of rupees towards facility fees in the matter. Sources close to developments in Sahara told MAIL TODAY that Mirach indulged in criminal manipulation since the BofA letter was proved to have been forged.

The Sahara affidavit is selfexplanatory: "Sahara has received information through e-mail dated 01.02.2015, which is quite disturbing. It is beyond our imagination that the veracity of the letter of Bank of America, dated 05.01.2015, may have any doubt. Sahara being aware of the seriousness of the matter has instructed its barrister/counsel in London, H S Gyani to visit the concerned branch of Bank of America in Los Angles, USA, and personally verify the position. The correct position would accordingly be brought to the knowledge of the SC."

The affidavit adds, "The present affidavit is being filed out of sheer sense of responsibility towards this court. We have now received the report from our barrister Harpreet S. Gyani that he visited the branch in Los Angles and found that the information given to us is absolutely right and that the letter was forged. Since we were focussing on this transaction, we could not take up other offers. We are astonished and feel cheated in such an adverse environment against us. We will take up all suitable legal proceedings, including civil and criminal, against MCH and their all officers involved in the transaction both in India and in USA for such reckless conduct."

Intriguingly, Sharma, who stays in San Jose, California, has admitted to stealing a database from a former employer. There are also two pending lawsuits against him alleging he forged a letter and produced fake documents to obtain a loan.