SC tells Sebi to review development proposals for Sahara's Versova property

The Supreme Court on Wednesday directed the Securities and Exchange Board of India (Sebi) to examine proposals submitted for the development of the Sahara group’s property in Mumbai’s Versova by two developers — Oberoi Realty Ltd and Valor Estate Ltd. 

The court directed both the developers to deposit Rs 1,000 crore via a demand draft, saying it will not be encashed until the court takes a final decision in the matter.  

The apex court will hear the case again after three weeks to take a decision on which developer should be given the go-ahead.

  The top court had in September last year said there was no embargo on the Sahara group to sell its properties to pay Rs 10,000 crore out of the Rs 25,000 crore for returning investors’ money as per its 2012 order. 

 

Sahara was granted 30 days to negotiate a joint venture (JV) or land development agreement for its Versova property in order to make up for the shortfall of Rs 10,000 crore in the Sebi-Sahara Fund. 

The court also asked the Sahara group to submit a scheme for the sale of its immovable domestic and offshore properties. The top court said it has received information that the capital markets regulator has Rs 15,000-odd crore in the Sebi-Sahara Fund. 

"More than 10 years have passed, and you still haven't deposited the money. Sebi is seeking the remaining Rs 10,000 crore… How will you muster the remaining Rs 10,000 crore," a bench of Justices Sanjiv Khanna, Bela Trivedi, and MM Sundresh had asked Sahara in September.

 

Senior advocate Kapil Sibal, appearing for Sahara, said the company did not have a fair opportunity to sell its properties as no one wants to touch the same.

 

Responding to this, the court had said, "You have been given enough chances… It is incorrect to claim that Sahara did not receive a fair opportunity to sell the properties. To say that you were not given free arm to sell the property was incorrect. There is no embargo on (the) Sahara family on selling assets. Even less than circle rate by 10% is allowed if the court’s approval is there… .”

 

Justice Khanna, at the end of the hearing, had again clarified that there was no bar on the sale of the (Sahara) properties.

 

On August 31, 2012, the Supreme Court had upheld an order by Sebi, and directed Sahara India Real Estate Corp and Sahara Housing Investment Corp to refund investors’ money, with 15 per cent interest. The funds were to be deposited with Sebi.

 

“If, after the verification of details furnished, (Sebi) is unable to find out the whereabouts of all or any of the subscribers, then the amount collected from such subscribers will be appropriated to the Government of India,” the apex court had said.

 

Sebi had in 2011 ordered the two Sahara Group firms to refund the money raised from nearly 30 million investors. It was done through certain bonds known as optionally fully convertible bonds.