Crisis-ridden Sahara group of companies, which has been facing trouble from markets watchdog Securities and Exchange Bureau of India (Sebi) over repayment of Rs 24, 000 crore worth of funds it had “illegally” raised from the public, is in talks with Bank of China to help retain its prized catch Grosvenor House in London which it acquired in 2010.

Following the attachment of bank accounts and properties of two Sahara companies and the group owner Subrata Roy by the markets watchdog in February, this step comes as a precautionary measure to retain its properties abroad.

According to a report published in the Economic Times on Monday, Bank of China, which is amongst the top ten commercial banks in the world, has offered loans worth a billion-dollar against hotels which the Sahara group owns in London and New York out of which total credit given against Grosvenor alone is $ 476.83 million. The other hotels include Plaza and Dreams Downtown in New York.

This could spell trouble for Sebi as it will become difficult for it to attach these properties which will become the Bank’s assets if the two parties i.e the Bank of China and Sahara group enter into an agreement.

The Chinese bank has been writing to the Sahara group enquiring about its ongoing tussle in the supreme court to understand the underlying risk in the proposal. However, Sahara officials have clarified that revenues generated by the three hotels in question will be sufficient to service the bank’s debts.