Supreme Court Asks Maharashtra to Clarify Sahara's Versova Plot Status
The Supreme Court issued a notice to the Maharashtra government to clarify if developing Sahara's Versova plot would encroach upon a protected mangrove forest area. The court also directed SEBI to examine the joint venture agreement with Oberoi Realty and
Sahara GroupSupreme CourtVersova PlotSebiMangrovesReal Estate MumbaiFeb 12, 2025
The notice seeks clarification on whether the development of Sahara's Versova plot to pay back creditors would intrude into a reserved mangrove forest area.
The bench, comprising Chief Justice Sanjiv Khanna and Justices MM Sundresh and Bela Trivedi, was hearing a batch of contempt petitions against Sahara Group of Companies for failing to comply with the Court’s 2012 order.
On the previous hearing, the Court directed the Securities and Exchange Board of India (SEBI) to review Sahara Group's Joint Venture Agreement with Oberoi Realty, which proposed to develop Sahara's Versova land in Mumbai.
SEBI was also ordered to file a sealed cover response.
The proposed developer, Oberoi Realty, was required to deposit Rs.
1000 crores with the Court.
Senior Advocate Shekhar Naphde, appearing as amicus curiae, informed the Court that a letter dated July 28, 1997, from the collector of Mumbai Suburban District indicated that Sahara’s Versova plot falls under the Mangroves forest region of the state.
In light of this, the bench issued a notice to the State Ministry of Forest and Urban Development and the Chief Secretary to clarify the current status of the Versova plot.
The bench also mentioned that a challenge to the Bombay High Court's 2018 order, which directed the protection of mangroves across Maharashtra, was pending before the Supreme Court.
The High Court had ruled that no construction activity could take place within 50 meters of any mangrove area, classifying all mangrove land as Coastal Regulation Zone-I (CRZ-I) according to the CRZ notifications of 1991 and 2011.
In 2023, the Maharashtra Maritime Board challenged this decision before the apex court, seeking permission to allow construction within 50 meters of mangroves.
To ensure viable options for monetizing the Versova property, the Court directed that two officers from Sahara, two officers from SEBI, and two property consultants nominated by SEBI from Mumbai hold a joint meeting.
This meeting is aimed at exploring the terms and conditions under which the Versova plot can be monetized to maximize value.
The bench refused to consider proposals from other bidders interested in investing in Sahara and acquiring a stake, noting that such issues are commercial in nature and should be resolved by SEBI officers and property consultants.
The bench clarified that the Securities and Investment Company of Commercial Lands (SICCL) would also be entitled to participate in these discussions.
The bench also directed that the Rs.
1000 crores deposited by Oberoi Realty be returned, along with any interest accrued.
Other interested bidders who had moved intervention applications were permitted to file their suggestions or comments, which could help the bench determine the best method for utilizing the land.
In 2012, the Supreme Court ordered two Sahara companies to refund Rs.
25,000 crores, plus 15% interest, to over two crore small investors who had invested in their debentures between 2008 and 2011.
The amount was to be deposited with SEBI.
When the sum remained unpaid, contempt petitions were filed against Sahara.
On September 5, 2024, the Court directed Sahara Group to deposit Rs.
1000 crores in a separate escrow account within 15 days and allowed the company to enter into a joint venture to develop its properties at Versova, Mumbai, to raise Rs.
10,000 crores for its lenders.
The Court ordered that development projects would only proceed with the Court’s approval.
If the joint venture agreement was not filed within 15 days, the Versova property would be sold on an 'as is where is' basis.
This decision followed an earlier direction on September 3, 2024, where the Court asked Sahara to outline a scheme for depositing the outstanding sum in the Sahara-SEBI Refund Account and to provide a list of its unencumbered properties.
Frequently Asked Questions
What is the Sahara Versova Plot case about?
The Sahara Versova Plot case involves the Supreme Court's directives to Sahara Group to develop its Versova plot in Mumbai to pay back its creditors. The Court is also seeking clarification from the Maharashtra government on whether the plot falls within a protected mangrove forest area.
Why did the Supreme Court issue a notice to the Maharashtra government?
The Supreme Court issued a notice to the Maharashtra government to clarify whether developing the Sahara Versova plot would intrude into a reserved mangrove forest area, as per a letter from the collector of Mumbai Suburban District dated July 28, 1997.
What did the Court order SEBI to do?
The Court directed SEBI to examine Sahara Group's Joint Venture Agreement with Oberoi Realty for developing the Versova plot and to file a sealed cover response. It also ordered a joint meeting between SEBI officers, Sahara officials, and property consultants to explore monetization options.
What is the Bombay High Court's 2018 order related to mangroves?
The Bombay High Court's 2018 order directed that no construction activity could take place within 50 meters of any mangrove area, classifying all mangrove land as Coastal Regulation Zone-I (CRZ-I) according to the CRZ notifications of 1991 and 2011.
What was the Supreme Court’s directive to Sahara Group on September 5, 2024?
On September 5, 2024, the Supreme Court directed Sahara Group to deposit Rs. 1000 crores in a separate escrow account within 15 days and allowed the company to enter into a joint venture to develop its properties at Versova, Mumbai, to raise Rs. 10,000 crores for its lenders. The Court ordered that development projects would only proceed with its approval.
Related News Articles
Golf and Turf Summit 2024: Innovations in India's Golf Industry
The Golf and Turf Summit 2024 in Pune wrapped up with exciting plans for an 18-hole golf tournament, specifically aimed at real estate developers and golf enthusiasts. The summit focused on the latest innovations and trends in the Indian golf industry, br
Government Eases Capital Gains Tax Rules for Property Owners: What It Means for You
The government has revised the long-term capital gains tax rules for property owners, offering relief to those affected by the recent changes. Here's how the new rules work.
Mumbai Real Estate Sector Applauds RBI's 6.5% Repo Rate, Eyes Festive Sales Boost
Prashant Sharma, President of NAREDCO Maharashtra, believes the RBI's decision to maintain the repo rate at 6.5% is crucial for the real estate sector, signaling stability in the interest rate environment and supporting housing demand during the festive s
Mumbai Property Registration Sees 5% Rise in November: Knight Frank
Knight Frank India, a leading real estate consultant, reported a 5% increase in property registrations in Mumbai during November 2023. A total of 9,736 units were registered, highlighting the city's ongoing growth in the real estate sector.
Iraah Lifespaces Launches Ultra-Luxury Villas in Maharashtra's Alibaug and Lonavala
Iraah Lifespaces, a rising star in the ultra-luxury villa development sector, has unveiled its exquisite collection of bespoke properties in Alibaug and Lonavala, Maharashtra. These exclusive residences cater to the discerning tastes of ultra-high-net-wor
Maharashtra Mandates Precast Construction: A Major Shift in the Real Estate Sector
The Maharashtra government has announced a significant move to mandate the use of precast construction methods for all real estate firms, aiming to reduce air pollution and improve building quality. This decision marks a pivotal shift in the construction