Mirach Capital has initiated a $400-million defamation suit against the Sahara Group and a media organisation for alleged attempts to discredit Mirach and its CEO.

Mirach said a breach of contract, related to a $2-billion financing deal, by Sahara has caused irreparable harm in the form of loss of income, shaken investor confidence, and personal injury. Mirach did not disclose the name of the media house.

Sahara too had said it would initiate legal action against Mirach on allegations of cheating and forgery. On Tuesday, Mirach said the allegations by Sahara were unfounded.

“Sahara’s representatives breached an exclusivity contract with Mirach Capital Group, following public comments by Mirach’s CEO as to the group’s acquisition strategy of the Sahara assets. Unable to make payments on the interest of the proposed loan package, and being an unwilling seller of the properties, Sahara launched a series of false allegations to discredit Mirach and kill the loan transaction,” Mirach said in a press statement.

“It further attempted to discredit CEO Saransh Sharma, launching unproven allegations of forgery that have claimed to be validated by Sahara’s internal investigations... .”

For Sahara chief’s release Mirach Capital and Sahara had earlier signed a deal under which Mirach Capital, headed by Sharma, had offered to extend a loan to Sahara against hotels in New York and London. Sahara wanted to use a part of these funds to release its Chairman, Subrata Roy. On Friday, March 13, the Supreme Court extended Subrata Roy and the Sahara Group one final extension to secure a transaction for its assets in order to raise the necessary bail.

But that could get delayed with Mirach saying it will apply for any injunctions necessary on any proposed transaction that Sahara may try to engage in, until the dispute isn’t resolved.

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