Adani's Bid for Sahara Assets: A Turning Point for the Troubled Empire
Adani Properties Private Ltd has made a significant offer to acquire 88 properties from the debt-laden Sahara Group, including marquee holdings such as the Sahara Star Hotel in Mumbai and Aamby Valley township. This deal, now before the Supreme Court, could be the last major effort to resolve Sahara's decade-long financial crisis.
Adani PropertiesSahara GroupReal EstateFinancial CrisisSupreme CourtReal EstateOct 16, 2025
India’s corporate world is abuzz with the news of Adani Properties Private Ltd’s offer to buy 88 properties from the debt-laden Sahara Group. The proposed multi-thousand-crore deal, now before the Supreme Court, includes marquee holdings such as the Sahara Star Hotel in Mumbai, Aamby Valley township near Lonavala, real estate in Lucknow, and several land parcels across India.
For Adani Properties, the acquisition aligns with its strategy of expanding and consolidating prime real estate and hospitality assets, deepening its footprint in key cities. For Sahara, it could be the last major effort to resolve a decade-long financial crisis that has eroded its credibility and strained its operations.
While the transaction offers hope for thousands of investors and lenders awaiting refunds, identifying genuine claimants and ensuring transparent fund distribution remain formidable challenges. The Supreme Court’s approval will determine the fate of this deal, which is fraught with many legal and regulatory challenges.
Lack of clarity on fund utilisation
While court records indicate that the Sahara Group has already deposited close to Rs 25,000 crore with SEBI over the years as part of its obligation to refund investors, there remains considerable ambiguity over how those funds have been or will be utilised.
The proposed sale of Sahara’s assets adds another layer of uncertainty. It is still unclear whether the proceeds from the proposed transaction will be directly channelled to investors through SEBI’s refund mechanism or diverted first toward settling other liabilities and expenses.
Legal experts have noted that the Supreme Court will need to lay down clear guidelines to ensure transparency and accountability in the disbursement process. “The regulator is yet to identify and repay the full amount of Rs 25,000 crore lying in its account. So what will happen to the proceeds from the sale of assets now? Who are the investors? Whose money is it? Why are they not approaching Sebi for the refund?” an analyst with an investment firm told The Indian Express, alluding to the unanswered questions.
In March 2023, the Supreme Court ordered that Rs 5,000 crore of the total amount of Rs 24,979.67 crore lying in the “Sahara-SEBI Refund Account” be transferred to the Central Registrar of Cooperative Societies, which, in turn, would disburse the same against the legitimate dues of the depositors of the Sahara Group of Cooperative Societies.
The Ministry of Cooperation in July 2025 noted that as of July 23, an amount of Rs 5,139.23 crore has been disbursed to 27,33,520 depositors out of 1,35,34,410 depositors of the Sahara Group of Cooperative Societies, and Rs 523.72 crore was available for disbursement. The Supreme Court has granted an extension in refunding the Sahara depositors until December 31, 2025.
The Sahara Story
Starting with a meagre capital of only Rs 2,000, Subrata Roy’s Sahara group travelled a long way to expand the business over the last 45 years. Roy, who died in November 2023, built up his empire by collecting deposits from millions of poor and rural Indians with limited or no access to formal banking services. The empire once comprised an airline, Formula One team, IPL cricket team, luxury hotels in London and New York, financial companies, and a sizeable land bank. Some of these assets are either under attachment or have been sold off to pay SEBI.
The Sahara group’s troubles began when the market regulator took action against Roy for illegally mobilising funds of over Rs 24,000 crore from three crore individuals in Optionally Fully Convertible Debentures through two financial companies, Sahara Housing Investment Corporation Ltd (SHICL) and Sahara India Real Estate Corporation Ltd (SIRECL).
In 2010, SEBI ordered Sahara to refund the money to investors and banned both companies and Roy from raising money from the public.
In 2013, Sahara sent 127 trucks containing 31,669 cartons full of over three crore application forms and two crore redemption vouchers to the SEBI office.
In March 2014, Roy was sent to jail in contempt of court for not paying a sum of Rs 10,000 crore. The court ordered that he not be released until he pays Rs 5,000 crore in cash and Rs 5,000 crore by way of bank guarantee.
Assets in Flux
In 2013, SEBI ordered the attachment of all properties and bank accounts of the Sahara group and top executives, including Subrata Roy, following a direction from the Supreme Court. The market regulator authorised HDFC Realty and SBI Capital Markets to auction 60 properties across the country following a directive from the Supreme Court.
Sahara had a total land bank of 33,633 acres, out of which the Aamby Valley City project near Lonavala accounts for 10,600 acres. As most of these assets are involved in litigation, there may not have been many takers for them, said a market source.
AAMBY VALLEY CITY
At its inception, the Aamby Valley City was described by the group as independent India’s first planned hill city, located in the scenic surroundings of the Sahyadris, spanning over 10,000 acres, near Pune.
In 2018, the Supreme Court allowed Sahara Group to sell its Aamby Valley township in parts through a court-appointed liquidator. The auction process began in August 2018 with the official liquidator inviting bids at a reserve price of Rs 37,392 crore. Bids to auction the property haven’t succeeded so far. In 2023, the Supreme Court rejected a plea by Sahara Group urging it to lift the attachment of its Aamby Valley project and permit it to enter into an agreement with Royal Partners Investment Fund for selling its 26 per cent stake for $1.6 billion.
OVERSEAS HOLDINGS
Despite the regulator blocking the group’s core business of fund mobilisation from small retail investors, Sahara Group purchased three overseas hotels: the Grosvenor House Hotel in London, the New York Plaza, and the Dream New York hotels in 2010.
In 2017, the group sold its stake in Grosvenor House to GH Equity UK for £575 million to clear its dues to SEBI. The Plaza Hotel, one of New York’s most iconic buildings, was fully acquired by a Qatar government-owned fund for about $600 million. The Dream New York hotel was also sold off. However, the group still operates the Sahara Star hotel near the Mumbai airport.
Airlines, Formula One Team
While Air Sahara had begun operations as Sahara Airlines in December 1993, the group found it a tough proposition to run an airline with mounting losses. In 2007, Jet Airways acquired the airline for Rs 1,450 crore, bringing an end to Roy’s aviation plans.
A similar story unfolded with Sahara’s F1 team, Sahara Force India. In August 2018, the governing FIA announced that the team had been renamed Racing Point Force India after an administrator-led asset sale to a consortium led by Canadian billionaire Lawrence Stroll.
Mutual Funds
Sahara’s plans to grow through the mutual fund route also didn’t work out. In July 2015, SEBI cancelled the registration of Sahara Mutual Fund, saying it was no longer ‘fit and proper’ to carry out this business and ordered that its operations be transferred to another fund house. It was then one of the smallest fund houses with just Rs 134 crore assets under management. SEBI also cancelled the portfolio management licence of Sahara.
Frequently Asked Questions
What is the proposed deal between Adani Properties and Sahara Group?
Adani Properties Private Ltd has offered to buy 88 properties from the debt-laden Sahara Group, including the Sahara Star Hotel in Mumbai, Aamby Valley township, and real estate in Lucknow. The deal is currently before the Supreme Court.
What are the main challenges in the proposed sale of Sahara's assets?
The main challenges include identifying genuine claimants, ensuring transparent fund distribution, and navigating the legal and regulatory hurdles. The Supreme Court will need to lay down clear guidelines to ensure transparency and accountability.
How much has Sahara Group deposited with SEBI for investor refunds?
Sahara Group has deposited close to Rs 25,000 crore with SEBI over the years as part of its obligation to refund investors. However, there is still uncertainty over how these funds will be utilized.
What is the status of Sahara's Aamby Valley City project?
The Aamby Valley City project, spanning over 10,600 acres near Lonavala, has been involved in litigation. The Supreme Court allowed Sahara to sell it in parts in 2018, but bids to auction the property have not been successful so far.
What happened to Sahara's overseas hotels and other assets?
Sahara sold its stake in the Grosvenor House Hotel in London and the Plaza Hotel in New York to clear its dues to SEBI. The group also sold its Dream New York hotel. However, it still operates the Sahara Star hotel near the Mumbai airport.
Related News Articles
Honoring Excellence in Indian Real Estate: Realty+ Women Icon Awards 2024
Realty+ celebrates women leaders in Indian real estate, pushing boundaries and driving growth.
Purva Home Fest 2024: A Grand Celebration of Home Buying in Mumbai and Pune
Get ready to find your dream home as Puravankara, a renowned real estate developer in India, presents the Purva Home Fest 2024 in Mumbai and Pune, starting from Navratri.
Latest Developments in the Indian Real Estate and Infrastructure Sectors: Godrej Properties, L&T, Indian Oil, PNC Infratech, NALCO in Focus
Godrej Properties Ltd has made a strategic move by acquiring three adjoining plots totaling 6.54 acres in Kharghar, Mumbai. This acquisition comes at a time when the real estate market is witnessing robust housing demand, making it a significant step for
Rise of Certified Real Estate Professionals: Lamrin Tech Skills University Takes the Lead
The real estate market in India has matured, becoming more organized and transparent. It's time for a unified policy in the sector, and Lamrin Tech Skills University is leading the way by awarding certifications to real estate professionals.
FASTag Becomes Mandatory at MSRDC Toll Plazas from April 2025
Starting from April 2025, the Maharashtra State Road Development Corporation (MSRDC) will enforce the mandatory use of FASTag at all its toll plazas, marking a significant step towards streamlining toll payments and reducing traffic congestion.
Pune Set to Launch Trump World Center: India's First Trump-Branded Office Complex
Pune is set to welcome the first Trump-branded office complex in India, marking a significant milestone in the country's real estate market. This ambitious project, known as Trump World Center, is expected to bring a new level of luxury and prestige to th