Supreme Court Directs Maharashtra to Clarify Sahara’s Versova Plot Status
The Supreme Court has issued notice to the Department of Forest and Urban Development and the Chief Secretary, State of Maharashtra, to clarify whether developing Sahara’s Versova Plot would encroach upon reserved mangrove forest areas. This move aims to
Supreme CourtSahara GroupVersova PlotMaharashtraMangrovesReal Estate MaharashtraFeb 12, 2025
Sahara matter, issued notice to the Department of Forest and Urban Development and the Chief Secretary of the State of Maharashtra on Wednesday, February 12.
The notice seeks clarity on whether developing Sahara's Versova Plot to pay back its creditors would intrude into reserved mangrove forest areas.
The bench, headed by CJI Sanjiv Khanna and Justices MM Sund resh and Bela Trivedi, was hearing a batch of contempt petitions against Sahara Group of Companies, which were in violation of the Court's 2012 order.
On the last hearing, the Court directed the Security Exchange Board of India (SEBI) to examine Sahara Group's Joint Venture Agreement with Oberoi Realty, proposed for developing Sahara's Versova land in Mumbai.
SEBI was ordered to file a sealed cover response before the Court.
The proposed developer for the project was also required to deposit Rs.
1000 Crores with the Court.
During the hearing, Sr Advocate Shekhar Naphde (amicus) informed the bench, citing a letter dated 28.7.1997 by the collector of Mumbai Suburban District, that the Versova plot of Sahara comes under the Mangroves forest region of the State.
Considering this, the bench issued notice to the State Ministry of Forest and Urban Development and the Chief Secretary, State of Maharashtra, to clarify the present status of the Versova plot.
Justice Sundresh also mentioned that a challenge to the Bombay High Court's 2018 order on directions for the protection of mangroves all over Maharashtra was pending before the Apex Court.
Notably, in 2018, the High Court bench of Justice AS Oka and RI Chagla ruled that there can be no construction activity within 50 meters of any mangrove area, as all mangrove land falls under Coastal Regulation Zone-I category as per both the CRZ notifications of 1991 and 2011.
In 2023, this decision was challenged by the Maharashtra Maritime Board before the Top Court, seeking permission to do construction within 50 meters of mangroves.
The Court ordered the following direction to ensure viable options to monetize the Versova property 'We also deem it appropriate to direct that two officers from Sahara, India Commercial Corporation, two officers of SEBI, along with two property consultants nominated by SEBI from Mumbai, will have a joint meeting to explore the terms and conditions on which the Versova plot can be monetized to get maximum value.' The Bench also refused to consider bid proposals from other bidders willing to invest in Sahara and acquire a stake instead of entering into a JV agreement.
The Court noted that such an issue is related to commercial dealing and should be resolved by the officers of SEBI along with the property consultants.
The bench clarified that in such discussions, SICCL will also have the right to participate.
The bench also directed that the deposited amount of Rs.
1000 Crores of Oberoi Realty will be returned along with any accrued interest.
Other interested bidders who had moved intervention applications were permitted to file their suggestions or comments to help the bench arrive at a proper method for utilizing the land.
In 2012, the Supreme Court ordered two Sahara companies to refund Rs.
25,000 crores, along with 15% interest, to over two crore small investors who invested in their debentures between 2008-2011.
The deposit was directed to be made with SEBI.
When the directed amount remained outstanding, pleas were filed against Sahara, alleging contempt.
Notably, 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 cash-strapped company to enter into a joint venture for developing its properties at Versova, Mumbai, to raise the sum of Rs.
10,000 crores due to be paid to its lenders.
The bench also ordered that development projects would be executed only upon the approval of the Joint Venture agreements by the Court.
In case the agreement was not filed within 15 days, the Versova property would be ordered to be sold on 'as is where is' basis.
This was subsequent to its earlier direction on September 3, 2024, where the Court called on the conglomerate to place before it a scheme as to how it plans to deposit the outstanding sum in the Sahara-SEBI Refund Account.
The Court also asked the company to provide a list of its unencumbered properties.
Frequently Asked Questions
Why did the Supreme Court issue notice to the Maharashtra Government?
The Supreme Court issued notice to the Maharashtra Government to clarify whether developing Sahara's Versova Plot would intrude into reserved mangrove forest areas, ensuring viable options to monetize the property and repay creditors.
What was the 2012 Supreme Court order against Sahara?
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 invested in their debentures between 2008-2011. The deposit was to be made with SEBI.
What is the proposed joint venture for the Versova land?
The proposed joint venture for the Versova land involves Sahara Group and Oberoi Realty, aimed at developing the property to raise funds for repaying creditors. SEBI was directed to examine the agreement.
What is the significance of the Versova Plot being in a mangrove forest area?
The Versova Plot's location in a mangrove forest area is significant because it restricts construction activities within 50 meters of any mangrove area, as per the Coastal Regulation Zone notifications of 1991 and 2011.
What are the next steps in the Sahara-SEBI case?
The next steps include a joint meeting between Sahara, SEBI, and property consultants to explore monetization options for the Versova Plot. SEBI will also consider suggestions from other interested bidders to find a proper method for utilizing the land.
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