Supreme Court orders auction process of Aamby Valley resort town of Sahara Group. The auction process will begin at the reserve price of Rs. 37,392 crore. Aamby Valley, the integrated hill city township spread over 6,76,211 acres near Lonavala is located between Mumbai and Pune. Sahara group pegs the market valuation of this project at over Rs 1 lakh crore.
Reserve price is the minimum price at which the seller is willing to sell his item at an auction. The seller can lower but cannot increase the reserve price.
The official liquidator of the Bombay High Court published an auction notice today inviting prospective bidders for the integrated hill township.
Royal Partners Investment Fund, a Mauritius based investor has offered to invest in Sahara group Aamby Valley project.
On February 6, had ordered the attachment of an Aamby Valley to recover dues from the company. The prime property is worth more than Rs. 39,000 crore.
Sahara group has moved to Supreme Court seeking permission for entering into an agreement with Victor Koenig UK limited with the nominee Royal Partners Investment Fund Limited and its limited partners have agreed to invest $1.67 billion (over 10,700 crores) in Sahara group’s Aamby Valley project.
Sahara has also prayed before the court to stop the auction process. The Supreme Court has opened a window for Sahara by permitting them to enter into negotiations and deposit Rs 1,500 crore with the court.
The Supreme Court has said in its order that the auction process will go on as per the schedule but if Rs.1,500 crore is paid as proposed by the group, into the Sebi- Sahara refund account by September 7, then the court will pass an appropriate order.