“There is no embargo on the Sahara group from selling properties. The only condition is you can sell it either at circle rate or circle rate minus 10%. If you want to sell it at a lesser value, you must get the court’s permission. It’s in nobody’s interest that properties go below circle rates, but the only concern is that transactions should be fair,” said the bench led by Justice Sanjiv Khanna,
NEW DELHI: On Tuesday (3rd Sept): The Supreme Court remarked that more than 10 years have passed without the Sahara Group complying with its order. The court emphasized that there is no restriction preventing the group from selling its properties to deposit approximately Rs 10,000 crore into the SEBI-Sahara refund account for the purpose of repaying investors.
The court further noted that a decree exists, requiring the Sahara Group to deposit Rs 25,000 crore, a sum they have failed to pay despite being given ample opportunities.
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The court, emphasizing the need for transparency, instructed the conglomerate to propose a scheme outlining how unencumbered properties would be sold to meet the required deposit, with the matter set for consideration on September 5.
“There is no embargo on the Sahara group from selling properties. The only condition is you can sell it either at circle rate or circle rate minus 10%. If you want to sell it at a lesser value, all you must do is get the court’s permission. It’s in nobody’s interest that properties go below circle rates, but the only concern is that transactions should be fair,”
said the bench led by Justice Sanjiv Khanna, addressing senior counsel Kapil Sibal, who represented Sahara.
The bench, which also included Justices MM Sundresh and Bela M Trivedi, directed the group to provide a list of unencumbered properties available for sale, involving Sebi in the process to ensure transparency and accountability.
“Let them submit a list of unencumbered properties. We can then discuss the safeguards that you require. We will devise a module to recover the remaining amount,”
the bench told senior advocates Arvind Datar and Pratap Venugopal, representing the market regulator.
This case follows the Supreme Court’s directives from August 31, 2012, which ordered Sahara group firms—Sahara India Real Estate Corporation Ltd (SIRECL) and Sahara Housing Investment Corporation Ltd (SHICL)—to refund the amount collected from investors with a 15% annual interest within three months. Despite over a decade passing since that order, the Sahara Group has yet to fully comply, leading to the court’s ongoing scrutiny.
Sebi expressed concerns that not all of Sahara’s properties are unencumbered and highlighted the uncertainty regarding the timeline for the group’s payment of the outstanding amount.
The bench then urged Sibal to present a clear plan detailing how the Sahara Group intends to deposit the Rs 10,000 crore and identify the specific properties for sale.
The bench also underscored the urgency of compliance, noting that it would be “prima facie” incorrect to claim that Sahara was not given sufficient leeway to sell properties for depositing the money.
“In one sense, you are a judgment debtor… The court order to deposit Rs 24,400 crore would act as a decree,” it said.
The bench also addressed various applications from flat buyers, operational creditors, and other parties seeking relief, including refunds. It clarified that the Supreme Court’s ongoing consideration of the matter does not prevent other appropriate forums from addressing issues related to the Sahara group.
The Sebi-Sahara case has undergone numerous legal developments since 2012. Sebi stated that Sahara firms have deposited Rs 15,455.70 crore to date, which has been invested in fixed deposits across nationalised banks.
As of September 30, 2020, the total amount in the Sebi-Sahara refund account, including interest, stands at Rs 22,589.01 crore. Sebi noted that only Rs 138 crore has been disbursed to investors so far.
