Subrata Roy in More Trouble with Mirach’s $400 mn Defamation Suit

Subrata Roy in More Trouble with Mirach’s $400 mn Defamation Suit

The Supreme Court of India has allowed extension to the Sahara Group to garner funds to secure the bail for Subrata Roy, its jailed chief. However, in the meanwhile, the U.S.-based company Mirach Capital Group filed a defamation lawsuit of $400 million against the Sahara Group and a news organization which allegedly collaborated with Sahara in the defamation.

The Sahara Group had earlier during the last month accused Mirach Capital of forgery and cheating in the $2.05 billion loan arrangement that miserably failed, and told that a legal action had been initiated against Mirach Capital. Sahara Group, badly in financial crises, alleged that Mirach and its CEO, Saransh Sharma entered into a huge financial commitment that it had been utterly incapable of honoring at the outset. It resulted in the breakdown of the deal, and loss of precious time, position, and resources of Sahara.

Mirach, on the other hand, said today in a press conference that Sahara’s allegations were unfounded, and that it had not committed any forgery. It accused Sahara of harassing the Mirach and its CEO in the court of public opinion. That was why; it filed a defamation case against the Sahara and a news agency for an amount of $400 million, it added. The firm further added that Sahara being unable to pay interest on the proposed loan package, and being disinclined to sell its properties, it (Sahara) leveled a series of in-genuine allegations to denounce and discredit Mirach, and kill the deal. It also accused Sahara of maligning the image of Milach’s CEO with stories of forgery.

Sahara and Mirach Capital had earlier signed a deal for $2 billion under which the latter offered the former a loan package against Sahara Group’s hotels in London and New York. Sahara desired to use a part of the loan amount for the release of its chief Subroto Roy who has been in custody due to a case in connection with non-repayment of investors’ money.

The mudslinging between the two continued.