Subrata Roy's get-out-of-jail deal is mired in mystery

February 5, 2015

Mumbai, Feb 5: Subrata Roy, the boss of the Sahara conglomerate, is in a New Delhi prison on contempt-of-court charges and needs to post $1.6 billion in bail to get out. To help raise the money, Sahara is in talks to refinance its overseas hotels, including New York's Plaza.

Subrata Roy

The only problem: It's unclear if the man who's orchestrating the deal, a 34-year-old former broker named Saransh Sharma, has the money to pull it off.

Sahara's head of corporate finance, Sandeep Wadhwa, said Sahara's lawyers had verified with Bank of America that Sharma has deposited just over $1 billion in an account at the bank that is "earmarked for the said transaction."

That account, however, doesn't appear to exist. A manager at the bank told Reuters that he didn't write a crucial document attributed to him: an email, sent in his name to Sahara, which purported to verify the account's existence.

After Reuters asked the bank to look into the account, spokeswoman Jumana Bauwens issued a statement saying: "Bank of America isn't involved in the transaction."

What's more, Sharma, who lives 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.

Bank of America's assertion that it has nothing to do with the deal, as well as details about Sharma's past, could throw a wrench into Sahara's efforts to free Roy in a case that has made headlines in India for almost a year.

Roy is being held at Tihar jail, the largest in India, on contempt charges for failing to comply with a court order to repay investors in a bond scheme later ruled to be illegal. The bail amount, the largest ever in India, reflects the cost of the illegal scheme, estimated by Indian regulators to be as much as $7 billion.

A lawyer working for Sahara, speaking on the condition of anonymity, said the company's lawyers had not separately checked with Bank of America to see whether Sharma had a billion-dollar account with the bank. Instead, the lawyer said, Sahara relied on a letter from the bank saying the funds were there. Sahara declined to comment on the lawyer's assertion.

Sharma told Reuters he is backed by a group of U.S. and U.K. investors for the refinancing and that the funds in the account have come from them. Both he and Sahara declined to identify the investors.

Sharma, who spoke with Reuters on Jan. 23 and sent a subsequent email on Jan. 28, said in an emailed statement on Wednesday that Mirach had faced "a number of challenges in closing this transaction" and that he wouldn't disclose "sensitive details" about the deal until it closes.

Under the proposed deal, which Sharma said he reached with Sahara in December, Sharma's investor group would help pay off about $880 million of a Bank of China loan for the hotels. Besides the Plaza, which Sahara bought for about $570 million in 2012, the properties also include the Dream Hotel in downtown New York and the Grosvenor House in London.

Sharma and the investor group also agreed to lend $650 million to Sahara and make a $450 million investment in the conglomerate's properties in India. Sahara and Sharma have said they expect to finalize the deal by Feb. 20.

It is unclear how paying off the Bank of China loan, or obtaining the loan and investment, would help Sahara pay Roy's bail and refund money to the bond investors.

Sahara's businesses range from financial services to media, retail and real estate. The company used to sponsor the Indian cricket team, which helped to make it a household name in the country. During his heyday, Roy, 66, socialized with presidents and film stars. Seen as a maverick among India's conservative business elite, his self-appointed title is "Managing Worker," and he's known in the company as "Saharasri," or "Mr. Sahara."

Sahara's troubles started in 2011 when it was found by the Securities and Exchange Board of India (SEBI), the market regulator, to have illegally sold billions of dollars of bonds to investors. After a legal battle that reached the Indian Supreme Court, Sahara was ordered to refund investors the money.

The Supreme Court threw Roy in jail last March after he failed to appear at a contempt hearing related to the dispute with the regulator and set his $1.6 billion bail. Sahara has said that it has repaid most investors, a claim SEBI has disputed.

Since Roy's imprisonment, Sahara has been trying to raise cash. It has been reporting its progress to the court and regulators, and needs approvals from them to do these transactions.

Sahara told the Supreme Court last month that it is in talks with Mirach Capital, the company Sharma set up to do the deal with Sahara. Sahara has shown the court a Jan. 5 letter from Bank of America, saying it is holding $1.05 billion in funds in an account on behalf of Mirach Capital for Sahara, according to a court filing. Sahara and Sharma declined to show Reuters a copy of the letter.

BANK MANAGER

Reuters has seen an email, dated Dec. 17, sent in the name of Nuno Marques, a Bank of America banking center manager in Wellington, Florida, to Sahara finance executive Wadhwa. In the email, the writer attests that Mirach "has sufficient liquidity with Bank of America to undertake the said transactions" with Sahara. The email does not specify the amount of funds Mirach has, but says the money would be put into escrow after anti-money laundering-related checks.

Marques, contacted by Reuters for comment on Feb. 3 at his office in Florida, denied having written the Dec. 17 e-mail. He said he had been called by another Bank of America employee to verify whether there were Mirach Capital funds on deposit and that he told her he couldn't do so.

Sahara declined to comment further, saying it was bound by "strict confidentiality provisions" as part of the talks with Mirach.

Shekhar Naphade, an independent lawyer advising the Indian Supreme Court on the case against Roy, said he had "no concrete details about the Bank of America escrow account" beyond the letter submitted by Sahara. Naphade said he didn't have the means to independently verify the claim made by Sharma about the bank account.

Sources familiar with the Reserve Bank of India's investigations into Sahara said the regulator had not received a request from the Supreme Court to probe whether the money is in the Bank of America account, but was making some initial checks of its own.

Sources familiar with SEBI said if the hotel deal does not go through, Indian government officials would seize and sell Sahara assets, including its hotels and properties, to raise cash.

FORMER BROKER

Sharma has spent the past decade working on and off for small independent brokerages in the United States, a Reuters review of U.S. regulatory filings shows.

He said in an interview that he had experience "transacting several multibillion dollar deals." He declined to give details, however, and said he had not successfully completed such deals before.

In 2013, Sharma sued a U.S. hedge fund for alleged breach of contract. In a Dec. 15, 2013, deposition in a New York federal civil court case, Sharma admitted to fabricating an email; to selling for $10,000 a database of contacts he stole from a previous employer, the investment bank AllianceBernstein; and to lying about the sources of funds he had obtained. A spokesman for AllianceBernstein declined to comment.

Sharma's case was dismissed. Sharma confirmed his statements made in the deposition, but said he had learned from his past mistakes.

He also has two other civil lawsuits pending against him in California courts.

A lawsuit filed by private equity firm Disruptive Technology Associates in August 2013 alleges Sharma forged a letter from the Bank of the West, saying that he had $400,000 in an account with the San Francisco based lender. A spokeswoman for Bank of the West declined to comment.

Another lawsuit filed by hedge fund Midwest Energy Resources in November 2013 alleges that he produced fake documents showing he owned pre-IPO shares in Twitter Inc that he planned to use as collateral for a loan. Sharma denies that allegation.

Sharma said the lawsuits have no bearing on the Sahara talks and that the suits were filed by people who are after his family's money. He told Reuters his family lived in Oman where his father was a doctor for the royal family.

Sharma said that he first connected Sahara's Wadhwa through business networking site LinkedIn. A Sahara spokesman confirmed on Wadhwa's behalf that Sharma had first approached the Sahara executive through LinkedIn.

Sharma told Reuters that he would bear the transaction costs for the deal and get a finder's fee, but is not investing in the deal. He said he was working with Paul Hastings lawyer Rick Kirkbride on the transaction.

Kirkbride referred calls to Paul Hastings spokeswoman Arielle Lapiano, who declined to comment.

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Agencies
June 30,2020

United Nations, Jun 30: India accounts for 45.8 million of the world's 142.6 million "missing females" over the past 50 years, a report by the United Nations said on Tuesday, noting that the country along with China form the majority of such women globally.

The State of World Population 2020 report released on Tuesday by the United Nations Population Fund (UNFPA), the world organisation's sexual and reproductive health agency, said that the number of missing women has more than doubled over the past 50 years - from 61 million in 1970 to a cumulative 142.6 million in 2020.

Of this global figure, India accounted for 45.8 million missing females as of 2020 and China accounted for 72.3 million.

Missing females are women missing from the population at given dates due to the cumulative effect of postnatal and prenatal sex selection in the past, the agency said.

Between 2013 and 2017, about 460,000 girls in India were missing' at birth each year. According to one analysis, gender-biased sex selection accounts for about two-thirds of the total missing girls, and post-birth female mortality accounts for about one-third, the report said.

Citing data by experts, it said that China and India together account for about 90-95 per cent of the estimated 1.2 million to 1.5 million missing female births annually worldwide due to gender-biased (prenatal) sex selection.

The two countries also account for the largest number of births each year, it said.

The report cites data by Alkema, Leontine and others, 2014 National, Regional, and Global Sex Ratios of Infant, Child, and under-5 Mortality and Identification of Countries with Outlying Ratios: A Systematic Assessment' from The Lancet Global Health.

According to their analysis, India has the highest rate of excess female deaths, 13.5 per 1,000 female births, which suggests that an estimated one in nine deaths of females below the age of 5 may be attributed to postnatal sex selection.

The report notes that governments have also taken action to address the root causes of sex selection. India and Vietnam have included campaigns that target gender stereotypes to change attitudes and open the door to new norms and behaviours.

They spotlight the importance of daughters and highlight how girls and women have changed society for the better. Campaigns that celebrate women's progress and achievements may resonate more where daughter-only families can be shown to be prospering, it said.

The report said that successful education-related interventions include the provision of cash transfers conditional on school attendance; or support to cover the costs of school fees, books, uniforms and supplies, taking note of successful cash-transfer initiatives such as Apni Beti Apna Dhan' in India.

It said that preference for a male child manifested in sex selection has led to dramatic, long-term shifts in the proportions of women and men in the populations of some countries.

This demographic imbalance will have an inevitable impact on marriage systems. In countries where marriage is nearly universal, many men may need to delay or forego marriage because they will be unable to find a spouse, the report said.

This so-called "marriage squeeze", where prospective grooms outnumber prospective brides, has already been observed in some countries and affects mostly young men from lower economic strata.

"At the same time, the marriage squeeze could result in more child marriages, the report said citing experts.

Some studies suggest that the marriage squeeze will peak in India in 2055. The proportion of men who are still single at the age of 50 is forecast to rise after 2050 in India to 10 per cent, it said.

The UN report said that every year, millions of girls globally are subjected to practices that harm them physically and emotionally, with the full knowledge and consent of their families, friends and communities.

At least 19 harmful practices, ranging from breast ironing to virginity testing, are considered human rights violations, according to the UNFPA report, which focuses on the three most prevalent ones: female genital mutilation, child marriage, and extreme bias against daughters in favour of sons.

Harmful practices against girls cause profound and lasting trauma, robbing them of their right to reach their full potential, says UNFPA Executive Director Dr. Natalia Kanem.

This year, an estimated 4.1 million girls will be subjected to female genital mutilation. Today, 33,000 girls under age 18 will be forced into marriages, usually to much older men and an extreme preference for sons over daughters in some countries has fuelled gender-biased sex selection or extreme neglect that leads to their death as children, resulting in the 140 million missing females.

The report said that ending child marriage and female genital mutilation worldwide is possible within 10 years by scaling up efforts to keep girls in school longer and teach them life skills and to engage men and boys in social change.

Investments totalling USD 3.4 billion a year through 2030 would end these two harmful practices and end the suffering of an estimated 84 million girls, it said.

A recent analysis revealed that if services and programmes remain shuttered for six months due to the COVID-19 pandemic, an additional 13 million girls may be forced into marriage and 2 million more girls may be subjected to female genital mutilation between now and 2030.

The pandemic both makes our job harder and more urgent as so many more girls are now at risk, Kanem said.

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Agencies
July 20,2020

Kolkata, Jul 20: As many as 13 migrant workers who came to their native village in West Bengal's Bankura district were denied entry at the quarantine centre by the locals.

As a result, the workers had to set up a tent accommodation at a nearby Beraban forest area and lived together in a single tent there, without adequate food, drinking water and basic facilities.

The migrant labourers came from Rajasthan after four months of COVID-19 lockdown which was imposed nationwide on March 25 to contain the spread of coronavirus.

When they arrived at Jagadalla village in the Bankura district and tried to put up at a village school building for two weeks self-quarantine, angry villagers vehemently protested against their entry fearing Covid infections in their village.

Sources said that local police and panchayat members also failed to make the villagers understand the fact that if the labourers strictly stayed in self-quarantine there would be no chance of any further infection.

"The school is located quite within our neighbourhood. If they stay there and tested positive, they might spread Covid infections in the village. We cannot allow them to stay in the school building," said Aniket Goswami, a villager.

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Agencies
February 16,2020

New Delhi, Feb 16: Despite the fact that Aam Aadmi Party (AAP) managed to clean sweep in the recently-concluded 2020 Delhi Assembly polls with eight women candidates winning, Chief Minister Arvind Kejriwal's new cabinet does not have a single woman.

This, even as eight AAP women candidates -- Atishi Marlena, Rakhi Birla, Raj Kumari Dhillon, Preeti Tomar, Dhanwati Chandela, Parmila Tokas, Bhavna Gaur and Bandana Kumari emerged victorious in the 2020 Assembly polls.

Also, AAP's poll campaign had put the spotlight on women's issues- free bus rides for women, safety etc.

This year, AAP had fielded nine female candidates out of which only woman candidate Sarita Singh from Rohtas Nagar suffered defeat. In 2015, the party had fielded six women candidates, all of whom won the election.

Atishi Marlena, who won the election from Kalkaji, has served as a key advisor to the AAP leader Manish Sisodia primarily on education policies that transformed public school education in the capital.

Just like Marlena, incumbent MLA Rakhi Birla from Mangolpuri constituency has also failed to comeback to the Cabinet in this term even after bagging over 74,100 votes, with a margin of over 30,000 votes and 58 per cent of the vote share.

She was charged with the Cabinet Ministry of Women and Child, Social Welfare and Languages, for a few months in AAP's first term from 2013 to 2014. During this, period she came to the spotlight as she became the youngest ever cabinet minister of Delhi at the age of 26 and was even called "giant killer" for defeating four-time Congress MLA Raj Kumar Chouhan in 2013 Delhi polls.

Another candidate of AAP, Raj Kumari Dhillon swept Hari Nagar against BJP's Tajinder Pal Singh Bagga by a margin of over 20,100 votes.

Apart from these three, Preeti Tomar (Tri Nagar), Dhanwati Chandela (Rajouri Nagar), Pramila Tokas (RK Puram), Bhavna Gaur (Palam), and Bandana Kumari (Shalimar Bagh)- the other five who won for AAP- do not figure in the new cabinet.

Today at Ramlila Maidan, AAP national convenor Arvind Kejriwal was sworn-in as Chief Minister of Delhi.

Besides him, Manish Sisodia, Satyender Jain, Gopal Rai, Kailash Gehlot, Imran Hussain, and Rajendra Gautamas took oath as the ministers in Delhi.

AAP achieved a landslide victory in the Assembly elections with a clear majority of 62 seats out of 70. 

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