News: Sahara sells Gurgaon land to M3M India for Rs. 1,211 crore-Dec 5, 2014

As it tries to raise funds for securing release of chief Subrata Roy from Tihar jail, the Sahara group on Thursday sold a big land parcel in Gurgaon near here for Rs.1,211 crore to realty firm M3M India Ltd.

The group is also believed to have clinched deals for sale of two more land parcels (one in Vasai, Mumbai, and another in Jodhpur, Rajasthan) for over Rs.1,250 crore, while talks are in the final stages for sale of a Pune land tract.

An official announcement is yet to be made for these two deals.

Announcing the Gurgaon deal, probably the biggest land transaction so far in 2014, M3M India said the 185 acres it bought would be used for ‘mixed-use development’ and has sales revenue potential of Rs.12,000 crore over the next 6-8 years.

M3M India Director Pankaj Bansal said it was not a ‘distress sale’ by Sahara.

He further said the deal, subject to the Supreme Court’s approval, was clinched two months ago as per the prevailing market price after M3M India was approached by the Sahara group.

The entire amount of Rs.1,211 crore will be paid in instalments over a period of six months, while post-dated cheques have been given to the Sahara group for purchase of this land, situated at Chauma village in Gurgaon.

The deal announcement comes within days of the Supreme Court permitting the Sahara group to proceed with the sale of four domestic properties, which is likely to fetch Rs.2,710 crore, in its bid to raise Rs.10,000 crore for Mr. Roy’s release.

Besides this Chauma land, the court has allowed Sahara to sell properties in Jodhpur, Pune and Vasai.

Sources said the Vasai land was being sold for Rs.1,111 crore, while that in Jodhpur for another Rs.140 crore.

Out of the list of nine domestic properties submitted earlier to the court, Sahara has already sold its Ahmedabad property for Rs.411.80 crore, which has gone into SEBI account.

Mr. Roy, who was sent to jail on March 4 this year in a case involving alleged non-refund of over Rs.20,000 crore with interest to depositors, was asked by the court to pay Rs.10,000 crore to get bail, of which Rs.5,000 crore should be paid in cash and the balance of the amount in bank guarantee.

Talking about the Gurgaon land deal, property consultant CBRE’s South Asia CMD Anshuman Magazine said: “The value is fair because the location is good.”