"After considering all related factors, we have decided not to go ahead with Liverpool acquisition deal, at least for the time being," said Sahara India official.
According the sources, billionaire Mukesh Ambani and a Chinese financial speculator also were in the race to buy Liverpool's major stake.
Liverpool FC is one of England's most successful football clubs and are in urgent need of a financial bailout.
Subrata Roy-owned Sahara Group has been a long-time sponsor of the Indian cricket team. They are also a sponsor of the Indian hockey team and an owner of one of the two new teams inducted into the Indian Premier League (IPL) - Pune Warriors.