Three days after a Supreme Court directive, the Bombay High Court on Monday put up the beleaguered Sahara Groups prestigious 'Aamby Valley city in Lonavala for a public auction.

The Official Liquidator for the Aamby Valley city -- considered the jewel in the crown of the Sahara Group -- has put up a reserve price of Rs 37,392 crore. The Sahara group pegs the market valuation of this project at over Rs 1 lakh crore.

The Supreme Court on Thursday had rejected the Sahara Group's proposal to repay the investors till July 2019 terming the proposed plan of payment too long.

The apex court told Roy that his proposal of paying Rs 1,500 crore, if the auction process was halted or postponed, was unbelievable.

"Your proposal is making us to make a statement that it is willing suspension of belief," a bench, headed by Justice Dipak Misra, said.

It said the auction process will go on according to the schedule and if Rs 1,500 crore is paid by the contemnor (Roy) into the Securities and Exchange Board of India (SEBI)-Sahara refund account by September 7, then it may pass an appropriate order.

"We are not inclined to entertain the prayer of the contemnor. The prayer is hereby rejected. If any agreement is reached by the group to raise money, then appropriate orders will be passed," a bench also comprising Justices Ranjan Gogoi and A K Sikri said.

During the hearing, senior advocate Kapil Sibal said that the auction process of Aamby Valley which would start with the publication of a notice on August 14, should be postponed at least till September 16 to enable Roy arrange the money.

He said that hotels in New York have been sold and soon money would be coming into the Sahara account after which Rs 1,500 crore would be deposited into the SEBI-SAHARA refund account by September 7, as had been directed by the court.

"Our request is that the auction process for Aamby Valley, which will be initiated by way of publication of a notice should be postponed till September 16, as the value of property will fall drastically once it is put on sale in public domain," Sibal said.

He said that Sahara has been on verge of entering an agreement with a Mauritius-based company to raise money, but for that purpose, the auction process has to be postponed for the time being.

"We are negotiating a deal of subscription agreement whereby an investor will invest 1.67 billion dollars in Aamby Valley out of which around Rs 5000 crore will given to the SEBI-Sahara refund account," he said.

Senior advocate Arvind Datar, representing the SEBI, opposed the proposal of the Sahara chief saying that every time a process starts, the group came up with some objection in order to delay the process.

He said that it was a global auction and interested parties from across the world would participate and Rs 4.4 crore hasd already been spent in initiating the process.

"It will not be appropriate, if the auction process is stalled," he said and added that according to SEBI's research, the said Mauritius-based company, named by Sahara, did not exist. -- PTI