Supreme Court Seeks Centre and Sebi Response on Sahara’s Plea to Sell 88 Properties
The Supreme Court has directed the Centre and Securities and Exchange Board of India (Sebi) to respond to Sahara India Commercial Corporation Ltd's (SICCL) plea to sell 88 properties to Adani Properties Private Ltd to raise funds for repaying investors.
SaharaSupreme CourtSebiAdani PropertiesInvestor RepaymentReal Estate MumbaiOct 14, 2025
A special bench led by Chief Justice B.R. Gavai, comprising Justices Surya Kant and M.M. Sundresh, directed Sahara to implead the finance ministry and the corporate affairs ministry in the case.
The direction came after solicitor general Tushar Mehta, appearing for the Centre, said the government must review Sahara’s proposal to sell these assets, including Aamby Valley in Maharashtra and Sahara Shaher in Lucknow, to the Adani Group.
“This appears to be a good suggestion, subject to various factors to be considered. The central government may also have to examine and present its views before the Court,” Mehta submitted, suggesting inclusion of the finance secretary and secretary, ministry of cooperation, noting that several cooperative societies had invested in Sahara entities through their members.
The court also asked amicus curiae senior advocate Shekhar Naphade to examine existing claims over the properties and prepare a detailed chart identifying assets that are disputed, free from claims, or have unclear ownership rights. It also ordered Sahara to review workers’ claims and coordinate with the Union government, Sebi, and the amicus before the next hearing.
The matter will be heard again on 17 November, when the court is expected to decide whether to grant approval for the proposed sale to Adani Properties.
During the hearing, senior advocate Mukul Rohatgi, appearing for Adani Properties, said the company was willing to acquire all 88 properties in one go, even if some assets were subject to disputes, in order to avoid prolonged litigation.
The 88 properties listed in Sahara’s plea include Aamby Valley City (Maharashtra), Hotel Sahara Star (Mumbai), Sahara Shaher (Lucknow), Sahara Ganj (Lucknow), and several large tracts of land across multiple states.
Sahara has stated that proceeds from the sale will be deposited in the Sebi–Sahara Refund Account, as directed earlier by the Supreme Court, to repay investors of its optionally fully convertible debentures (OFCDs).
The proceedings form part of the long-running Sahara–Sebi dispute, in which the Supreme Court in 2012 directed Sahara entities to refund over ₹24,000 crore raised through OFCDs to investors via Sebi. Sahara was required to refund around ₹25,000 crore, along with 15% annual interest.
The group has claimed to have deposited around ₹16,000 crore till date, though Sebi maintains that over ₹9,000 crore remains outstanding.
As part of the disbursal process, the Court in September permitted the release of ₹5,000 crore from the refund account to depositors, including dues owed to investors of Sahara Group cooperative societies.
It is to be noted that Over the years, the Supreme Court has allowed Sahara and its group companies to sell properties to raise funds for investor repayments, provided the sale price is not less than 90% of market value.
In a similar move in September 2024, the court allowed Sahara to form a joint venture to develop its Versova property in Mumbai, with the aim of raising ₹10,000 crore, directing that all proceeds be deposited into the Sebi–Sahara Refund Account.
Real estate developer Oberoi Realty later expressed interest and deposited ₹1,000 crore with the Supreme Court. However, the funds were refunded after it was found that the Versova plot included alleged mangrove land, which could not be developed.
The court has since asked the Union Environment Ministry and Maharashtra Government to clarify whether the 106-acre Versova plot is fully or partially classified as mangrove forest. The matter remains pending.
Sahara Group’s legal troubles date back to 2010, when Sebi barred its chief, Subrata Roy, and its firms from raising funds through optionally fully convertible debentures (OFCDs), citing regulatory violations.
Sahara challenged the ruling in the Allahabad High Court, which temporarily restrained Sebi from taking action. However, the Delhi High Court later issued a warrant against Roy over allegations of investor fraud.
The Supreme Court ultimately ordered Sahara to disclose details of its OFCD schemes and refund investors with 15% interest.
In 2014, Subrata Roy was arrested for non-compliance and sent to Tihar Jail. He was released on parole in 2016 but continued to face legal scrutiny.
In November 2023, Roy passed away at a private hospital in Mumbai after a prolonged illness.
Frequently Asked Questions
What is the main issue in the Sahara–Sebi dispute?
The main issue in the Sahara–Sebi dispute is the requirement for Sahara to refund over ₹24,000 crore raised through optionally fully convertible debentures (OFCDs) to investors, as directed by the Supreme Court in 2012.
What is the proposed sale of 88 properties by Sahara for?
Sahara is proposing to sell 88 properties to Adani Properties Private Ltd to raise funds for repaying investors of its optionally fully convertible debentures (OFCDs).
Which government ministries are involved in the Sahara case?
The finance ministry, corporate affairs ministry, and the ministry of cooperation are involved in the Sahara case, as suggested by the solicitor general.
What is the role of the amicus curiae in this case?
The amicus curiae, senior advocate Shekhar Naphade, is tasked with examining existing claims over the properties and preparing a detailed chart identifying assets that are disputed, free from claims, or have unclear ownership rights.
What is the current status of the Versova property dispute?
The Supreme Court has asked the Union Environment Ministry and Maharashtra Government to clarify whether the 106-acre Versova plot is fully or partially classified as mangrove forest, and the matter remains pending.
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