Supreme Court Orders Sahara Group to Deposit Rs 1000 Crore, Allows Joint Venture for Mumbai Land Development
The Supreme Court has directed Sahara Group to deposit Rs 1000 crore in a separate escrow account within 15 days and allowed it to enter into a joint venture for developing its land at Versova in Mumbai.
Sahara GroupSupreme CourtSebiJoint VentureReal EstateReal Estate MumbaiSep 05, 2024
The amount of Rs 10,000 crore has to be deposited in SEBI-Sahara refund account for returning the investors’ money, in compliance with the apex court’s 2012 order.
A bench of Justices Sanjiv Khanna, MM Sundresh and Bela M Trivedi said in case the joint venture/development agreement is not filed in the court within 15 days, then it will sell the 12.15 million square feet of land at Versova on ‘as is where is’ basis.
The top court allowed the Sahara group companies – Sahara India Real Estate Corporation Ltd (SIRECL) and Sahara Housing Investment Corporation Ltd (SHICL) –which were directed to deposit around Rs 25,000 crore in 2012, to enter into joint ventures agreement for developing other properties also including the Aamby Valley project at Mumbai.
Pointing out that the Sahara Group is in “deep trouble” for not complying with the apex court’s order since 2012, the bench said the joint venture or development agreements will be subject to approval of the court.
The bench clarified that money received from sale of any properties by the Sahara Group must be deposited in the SEBI-Sahara refund account.
The sale transaction should be above the circle rate or 10 percent below the circle rate. In case the sale transaction is 10 percent below the circle rate, then prior permission of the court will be taken.
The Securities and Exchange Board of India (SEBI) said as per its record the principal liability on Sahara Group is Rs 25,781 crore, while the company claimed the principal amount asked by the court to deposit is around Rs 24,029.73 crore.
Senior advocate Kapil Sibal, appearing for the Sahara Group of companies, gave a roadmap for depositing the money in the SEBI-Sahara account, which said that the Sahara Group will develop its land at Versova and Aamby valley in Mumbai by forming joint ventures in one and half years and to establish its bonafide by depositing Rs 1,000 crore within 10 days.
However, the bench disagreed with the roadmap and said that Rs 1,000 crore piecemeal deposits would not work and the period of one and half years is a very long period.
Information
Sahara Group is a major business conglomerate in India with interests in real estate, finance, and other sectors. The group has been embroiled in a long-running dispute with the Securities and Exchange Board of India (SEBI) over the refund of investors’ money.
The Securities and Exchange Board of India (SEBI) is the primary regulator of the securities market in India. It was established in 1988 and is responsible for protecting the interests of investors and promoting the development of the securities market.
Tags Sahara Group, Supreme Court, SEBI, Joint Venture, Real Estate
FAQs
Q What is the amount that Sahara Group has been directed to deposit in the SEBI-Sahara refund account?
A Rs 10,000 crore
Q What is the deadline for Sahara Group to deposit the amount?
A 15 days
Q What is the purpose of the joint venture agreement that Sahara Group is allowed to enter into?
A To develop its land at Versova in Mumbai and realise Rs 10,000 crore
Q What is the principal liability of Sahara Group as per SEBI’s record?
A Rs 25,781 crore
Q What is the roadmap given by Sahara Group for depositing the money in the SEBI-Sahara account?
A To develop its land at Versova and Aamby valley in Mumbai by forming joint ventures in one and half years and to establish its bonafide by depositing Rs 1,000 crore within 10 days.
Frequently Asked Questions
What is the amount that Sahara Group has been directed to deposit in the SEBI-Sahara refund account?
Rs 10,000 crore
What is the deadline for Sahara Group to deposit the amount?
15 days
What is the purpose of the joint venture agreement that Sahara Group is allowed to enter into?
To develop its land at Versova in Mumbai and realise Rs 10,000 crore
What is the principal liability of Sahara Group as per SEBI’s record?
Rs 25,781 crore
What is the roadmap given by Sahara Group for depositing the money in the SEBI-Sahara account?
To develop its land at Versova and Aamby valley in Mumbai by forming joint ventures in one and half years and to establish its bonafide by depositing Rs 1,000 crore within 10 days.
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