Sahara Star’s Debt Drama: Banks Seek Buyers for ₹700 Crore Loans

Unknown Apr 02, 2026 2 Views

Lenders led by Union Bank of India are gearing up to auction the ₹700 crore debt owed by the iconic Sahara Star Hotel in Mumbai. This move comes after the National Company Law Appellate Tribunal rejected a plea to initiate insolvency proceedings against the hotel last month.

Banks are seeking all-cash bids after an earlier offer from the National Asset Reconstruction Company was deemed too low. The auction process is expected to attract interest from asset reconstruction companies and distressed asset funds, setting a benchmark for further recovery efforts.

Union Bank, the lead lender, accounts for over half of the debt, while UCO Bank, IDBI Bank, and Bank of Baroda hold smaller portions. The Sahara Group acquired the hotel in 2002, but financial stress has plagued the property for over five years, leading to failed restructuring attempts and legal battles.

Sources: Economic Times, MSN.

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