Sahara eyes new biz to beat constraints

New Delhi, July 2: Embattled Sahara group has said it is confident of getting out of long- running financial constraints by the next fiscal and will regain a key position as an Indian conglomerate by entering several new businesses.

Sahara has been locked in a prolonged legal battle with Sebi for allegedly breaching norms in raising nearly ` 25,000 crore through certain bonds.

The Subrata Roy- led group was later asked by the Supreme Court to deposit the funds with Sebi for refund to investors, even as it maintains to have already refunded majority of the bondholders.

In an advertisement on its ‘ financial issues’, Sahara said funds totalling more than ` 20,000 crore, deposited by it with Sebi and the interest accrued, are lying idle whereas the regulator has managed to refund only ` 91 crore to the investors in last five years as the group has already repaid majority of the investors.

The group said it is confident that the money in Sebi- Sahara account will come back to it after verification of documents about the repayments.

Confident of its “bright and prosperous future”, Sahara said it has been banned from raising any funds as proceeds from any sale of its assets go directly to the SebiSahara account and “not a single rupee can be used for the needs of the group”.

Due to this ban, the group said, it has lost business opportunities of earning several thousands of crores of rupees.

Besides, its cash flow took a hit of ` 15,000 crore after it had to refund around ` 22,000 crore to investors in just 6- 7 per months during the year 2012, as against the planned repayment in small amounts over 16- 17 years under the original financial schemes, it said.

The group, however, expressed confidence that it would attain a “key position in India” by 2019- 20 after clearing all hurdles and obstructions, as its assets continue to be three times of its liabilities.

Asked to explain further on its assertions, a Sahara group spokesperson told PTI the liability was ` 62,104 crore as on December 31, 2014, while assets were ` 1,77,229 crore, and the ratio of the figures are not much different today.

Replying to a query on how it expects to overcome all financial constraints by 2019- 20, the group said, “Sahara is confident that Sebi will be directed very soon to start the verification of the documents of Sahara’s investors, which are already with Sebi.”