Oberoi Realty's ₹1000 Crore Deposit to Be Returned as SC Reviews Sahara's Land Sale
The Supreme Court has ordered the Union Environment Ministry and the Maharashtra government to determine if Sahara India Commercial Corp's 106-acre Versova plot in Mumbai is a mangrove forest. The court also decided to return the ₹1000 crore deposit made
Supreme CourtSahara IndiaOberoi RealtyReal EstateMangrove ForestReal Estate MumbaiFeb 12, 2025
This directive came during a hearing on the ongoing legal battle over the property, which is a subject of strict coastal regulation due to its environmental significance.
The apex court, led by Chief Justice Sanjiv Khanna, also ordered a meeting between officials from Sahara, the Securities Exchange Board of India (SEBI), and real estate consultants from Mumbai.
The purpose of this meeting is to explore the terms and conditions under which the Versova plot can be monetized to achieve maximum value.
The court gave the Ministry of Environment, Forest and Climate Change (MoEF) secretary and the Maharashtra government chief secretary a fortnight to provide information on the current status of the Versova property.
They are also required to produce relevant documents, including the sale deed, issued by the revenue department.
Amicus Shekhar Naphade informed the court that the 106-acre plot, which contains mangroves, falls under the stringent coastal regulation zone, prohibiting any development.
In response to this, Sahara’s senior counsel, Kapil Sibal, mentioned that the company had received an offer of ₹8000 crore for a joint venture (JV) development within 12 months from a third party for the plot.
However, Chief Justice Khanna highlighted that other bidders were more interested in an outright sale of the land rather than a joint venture.
The apex court, therefore, instructed Sahara India and SEBI to each appoint two officers and two real estate consultants to evaluate whether a JV development agreement or the sale of the land would yield the maximum value.
The court emphasized the need to optimize and secure the best price.
The Supreme Court also decided to return the ₹1000 crore deposit made by Oberoi Realty, along with any interest accrued, for the time being.
This decision follows the SC’s recent directive to SEBI to examine the land development proposals submitted by Oberoi Realty and Valor Estate for the Sahara group's Versova plot.
Each developer was initially required to deposit ₹1000 crore with the court registry.
These developments are part of the ongoing efforts to settle the substantial liabilities of Sahara India Real Estate Corporation and Sahara Housing Investment Corporation, which were ordered by the apex court in August 2012 to refund over ₹24,029 crore to 33 million bond investors, along with interest at 15% from March 2008.
As of March 31, 2023, Sahara has paid ₹15,646.68 crore, leaving a remaining liability of ₹10,000 crore.
In September 2024, the apex court directed the two Sahara companies to enter into a joint venture or land development agreement for their 106-acre plot to discharge their remaining liabilities.
The proposals submitted by Oberoi Realty and Valor Estate were in response to this directive.
The Versova plot, located in a prime area of Mumbai, has been a subject of significant legal and environmental scrutiny.
The Supreme Court’s recent orders aim to balance environmental conservation with the financial obligations of the Sahara group, ensuring that all stakeholders' interests are addressed.
Frequently Asked Questions
What is the current status of the 106-acre Versova plot in Mumbai?
The Union Environment Ministry and the Maharashtra government are currently determining whether the 106-acre Versova plot, owned by Sahara India Commercial Corp, is a mangrove forest. This information is crucial for deciding the plot's future use.
What decision did the Supreme Court make regarding the ₹1000 crore deposit by Oberoi Realty?
The Supreme Court has decided to return the ₹1000 crore deposit made by Oberoi Realty, along with any interest accrued, for the time being. This decision is part of the ongoing legal proceedings involving the Versova plot.
What are the terms and conditions for the monetization of the Versova plot?
The Supreme Court has ordered a meeting between officials from Sahara, SEBI, and real estate consultants to explore the terms and conditions for monetizing the Versova plot to achieve maximum value. This includes evaluating the feasibility of a joint venture or an outright sale.
What is the liability of Sahara India Real Estate Corporation and Sahara Housing Investment Corporation?
As of March 31, 2023, Sahara India Real Estate Corporation and Sahara Housing Investment Corporation have a remaining liability of ₹10,000 crore. They are required to refund over ₹24,029 crore to 33 million bond investors, along with interest at 15% from March 2008.
Why is the Versova plot subject to strict coastal regulation?
The Versova plot is subject to strict coastal regulation because it falls within a zone containing mangroves. Development in this area is prohibited due to environmental concerns, making the determination of its status as a mangrove forest critical.
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