With the much-hyped $ 2-billion funding by Mirach falling apart over “forgery” allegations, Sahara has begun exploring fresh options to secure bail for its chief Subrata Roy, even as the US firm hit back claiming that the Indian group itself scuttled the deal.

Sources said Sahara group has begun looking for new investors to garner necessary funds and the Mirach deal was off the table, while it would soon take a call on initiating legal action against Mirach Capital, run by Indian-origin businessman Saransh Sharma.

Mirach also said the syndicated loan package offered to Sahara was “no longer on the table”, but it offered a complete buyout of Sahara’s three iconic hotels -- Plaza and Dream Downtown in New York, as also Grosvenor House in London.

Sharma, who himself is facing pending lawsuits in the US and in the past has reportedly admitted to stealing database of a former employer, rejected the allegations of forgery in this loan deal and accused Sahara group of repeatedly undermining the transaction, while wasting the time of “its investors, SEBI and the Supreme Court”.

He, however, did not comment specifically on charges of providing a “forged” Bank of America letter, which was placed before the Supreme Court to guarantee the deal.

The purported transaction was to involve transfer of loans on Sahara’s three iconic overseas hotels -- two in New York and one in London -- to a syndicate of investors, for which Mirach had claimed to have initially deposited $ 1.05 billion in a Bank of America account. The financing package was to be expanded to about $ 2 billion eventually.

Sahara was looking to use part of these funds to ensure release of Roy and his two colleagues from Tihar Jail, where they have been lodged for almost a year in a case relating to repayment of investors’ money totalling over Rs 20,000 crore.

Bank of America yesterday said it was not at all involved in any such transaction, following which the entire financing arrangement began unravelling and resulted in allegations of “forgery” and subsequent counter-allegations.

After BofA’s disclosure, Mirach said it has “determined” a bank for the funding plan but did not name the same.

Later last night, Sahara itself said that its own due diligence found the said BofA letter to be a “forged letter” and it would take all necessary legal action, including civil and criminal proceedings both in India and the US, against Mirach and its officers.

Sahara said Sharma claimed to have “billions of funds with him” and he was also paid “crores of rupees towards facility fee” with regard to the proposed transactions.

Reacting to Sahara’s charge, Mirach today refuted allegations of forging documents and claimed the Indian group scuttled the $ 2 billion loan deal fearing interest payment defaults that could result in losing assets at discounted prices.

The failure of the proposed deal has come as a huge blow to crisis-hit Sahara, which was looking to use part of these funds to ensure release of Roy and his two colleagues from jail. They have been behind the bars for almost a year in a case relating to repayment of investors’ money totalling over Rs 20,000 crore.

Noting that Mirach faced a number of challenges in the proposed transaction with Sahara, Sharma claimed that “nevertheless, we remain steadfast and are ready, willing, and able to acquire these assets”.

“In spite of the court mandates to raise bail, Sahara has always been and continues to be an unwilling seller of these assets. They have thus repeatedly acted to undermine the transaction, and thereby waste the time of our investors, SEBI, and the Honourable Supreme Court of India.

“The dangerous allegations made by Sahara are indicative of a direct intent to destabilise a deal structure that, given its high rate of return, would benefit Mirach and its investors,” Sharma said.

According to him, the Amicus Curiae, Sahara’s legal counsel, Subrata Roy, and other essential parties, including our investors, have been made privy to the details indicating Mirach’s willingness and ability to successfully execute this transaction.

Taken aback by a “forged letter” claiming $ 2-billion funding through Bank of America, crisis-hit Sahara Group had yesterday said it has been “cheated” by US-based Mirach Capital and would take all suitable legal action against the firm and its officers.

Responding to it, Sharma said that Mirach initially reached a deal with Sahara to provide a structured loan package, including taking over the debt on the foreign assets from Bank of China, and a sale of the Indian assets.

Consistently, Mirach Capital has been interested in an outright sale of the assets, however, Sahara would only agree to exclusivity under the loan structure as outlined, he added.

“Upon recognising their inability to make the first interest payment on the loan, and thus in danger of losing their assets at a discounted rate through default, members of the Sahara Group violated the exclusivity agreement and began shopping the assets for a sale,” Sharma claimed.

He said that it came to know about the same when representatives of Sahara Group approached members of Mirach’s syndicate.

“Following Mirach’s multiple notices to Sahara that they were in breach of contract, Sahara then began to take an adversarial position against Mirach, and began to attempt to discredit and smear Mirach’s reputation.”

“Any such claims of Sahara being defrauded by Mirach are untrue and are being presented in an effort to unravel the deal and shelter Subrata Roy.

“Proof of Mirach’s financial capabilities were previously verified directly with Sahara’s lawyers, and a simple meta data test will show no documents have been forged,” he said.

As per submissions made before the Supreme Court last month, Mirach was to conduct this deal through funds deposited in an account with Bank of America, which was proposed to transfer funds to the accounts of two Sahara entities.

“Mirach likewise recognised the associated risks, but nonetheless was committed to rescue the distressed assets in the centre of this proposed structure.

“In light of the breach of contract, Mirach is no longer considering an offer for the loan structure, however, remains ready, willing and able to facilitate an acquisition of these assets,” Sharma said.

He noted that upon agreement of Sahara with support from the Supreme Court of India to a sale of the assets, Mirach stands ready to publicly disclose the identity of its investors who have historically earmarked funds for this transaction to which Mirach has had access.

“Numerous financial institutions, legal counsel, and investors, have repeatedly declined the opportunity to engage with this transaction because of the public profile and legal troubles of Roy,” he added.

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