U.S. authorities probe alleged forged letter from Mirach in Sahara deal

SAN FRANCISCO/NEW YORK, (Reuters) – Federal authorities in San Francisco are probing U.S.-based Mirach Capital Group, two sources familiar with the situation told Reuters, amid allegations that the group gave a forged bank letter to Indian conglomerate Sahara as part of financing negotiations.

Sahara had sought to borrow more than $1 billion from Mirach to help bail its chairman, Subrata Roy, out of jail in New Delhi. Roy was jailed last year for contempt charges for failing to comply with a court order to repay investors in a bond transaction that was ruled to be illegal.

His bail was set at $1.6 billion, the highest ever in India, and his company sought to raise money to pay for it. The Indian conglomerate was willing to use hotels it owns, including New York’s Plaza, as collateral.

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