Supreme Court Asks Union and Maharashtra to Review Sahara’s Versova Plot Status
The Supreme Court has directed the Union Environment Ministry and the Maharashtra government to provide information about the status of Sahara India Commercial Corp's 106-acre plot in Versova, Mumbai. The court is reviewing the plot's potential for develo
Supreme CourtSahara IndiaVersova PlotMangrove ForestReal EstateReal Estate NewsFeb 12, 2025
The apex court emphasized the need for clarity on the status of the land, especially since it falls within the stringent coastal regulation zone where development is strictly regulated.
A bench led by Chief Justice Sanjiv Khanna has given the Ministry of Environment, Forest and Climate Change (MoEF) secretary and the Maharashtra government chief secretary two weeks to submit their findings.
Sahara India Commercial Corporation is required to provide all relevant documents, including the sale deed, to support the veracity of the land's current status.
Amicus Shekhar Naphade informed the court that the 106-acre plot contains mangroves and is part of a highly protected area where no commercial or residential development is permitted.
Despite these constraints, Sahara’s senior counsel Kapil Sibal informed the court that the company had received an offer of Rs 8,000 crore for a joint venture (JV) development within 12 months.
However, the court noted that other potential bidders were more interested in an outright sale of the plot rather than a joint venture.
In light of this, the top court directed that a meeting of officials from Sahara, the Securities and Exchange Board of India (SEBI), and real estate consultants should be held to determine the best method for monetizing the land and maximizing its value.
Chief Justice Khanna emphasized the importance of optimizing the land's value and ensuring the best price is obtained.
The court also decided to return the Rs 1,000 crore deposit made by Oberoi Realty, with any interest accrued, pending further review of the property's status.
The Supreme Court had previously asked SEBI to evaluate the land development proposals submitted by Oberoi Realty and Valor Estate.
Each developer was required to deposit Rs 1,000 crore with the court registry.
These proposals were submitted in response to the court’s directive in September 2024, which ordered Sahara India Real Estate Corporation and Sahara Housing Investment Corporation to enter into a joint venture or land development agreement for the 106-acre plot to discharge their financial liabilities.
As of now, the two Sahara companies owe an outstanding amount of Rs 10,000 crore.
They have already paid Rs 15,646.68 crore as of March 31, 2023.
The apex court initially ordered the companies to refund more than Rs 24,029 crore, collected from 33 million bond investors, with an interest of 15% from March 2008.
The ongoing legal proceedings highlight the complexities and challenges faced by developers and regulatory bodies in managing and utilizing land that falls under strict environmental protections.
The court’s decision to review the land's status and explore optimal monetization methods underscores the balance between environmental conservation and financial responsibilities.
Frequently Asked Questions
What is the current status of Sahara India Commercial Corp's 106-acre plot in Versova?
The Supreme Court has directed the Union Environment Ministry and the Maharashtra government to determine whether the 106-acre plot in Versova, Mumbai, is fully or partially a mangrove forest. The plot falls under the stringent coastal regulation zone where no development is permitted.
What has the Supreme Court asked Sahara, SEBI, and real estate consultants to do?
The Supreme Court has ordered a meeting of officials from Sahara, SEBI, and real estate consultants to explore the terms and conditions for monetizing the Versova plot and to determine whether a joint venture development or an outright sale would yield the maximum value.
How much does Sahara owe, and what is the background of the case?
Sahara owes an outstanding amount of Rs 10,000 crore. The case dates back to August 2012 when the Supreme Court ordered Sahara to refund more than Rs 24,029 crore collected from 33 million bond investors, with an interest of 15% from March 2008. As of March 31, 2023, Sahara has paid Rs 15,646.68 crore.
What is the significance of the Rs 1,000 crore deposit by Oberoi Realty?
Oberoi Realty deposited Rs 1,000 crore with the court registry as part of the land development proposals submitted for the Sahara group's 106-acre plot in Versova. The Supreme Court has decided to return this deposit with any interest accrued, pending further review of the property's status.
Why is the Versova plot important for environmental conservation?
The Versova plot contains mangroves and falls under the stringent coastal regulation zone, where no development is permitted. This makes the plot significant for environmental conservation, and any development or sale must adhere to strict environmental regulations.
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