The Supreme Court on Wednesday asked market regulator SEBI and the amicus curiae to examine two separate proposals of two firms for developing Sahara group's land in Mumbai to return investors' money.
A special bench comprising Chief Justice of India Sanjiv Khanna and Justices M M Sundresh and Bela M Trivedi said the companies, which were interested in entering into joint ventures with the Sahara Group, would have to deposit Rs 1,000 crore with the apex court registry within 15 days.
Mumbai-based Valor Estate Ltd (VEL), formerly known as DB Realty Ltd, also moved the top court showing interest in Versova land of the Sahara Group.
Senior advocate Manan Kumar Mishra, appearing for the VEL, said it was willing to pay Rs 1,000 crore upfront.
A copy of the proposals of the companies would be provided to the advocates on record of the SEBI and amicus curiae senior advocate Shekhar Naphade.
"The SEBI (Securities and Exchange Board of India) will conduct their own investigation and examine the proposal, so that they may file their response in a sealed cover in this court with a copy to the advocates of the proposer companies and the developer," said the bench.
While posting the matter after three weeks, the court said, "Valor (VEL) has undertaken to deposit Rs 1000 crores in this court by way of a demand draft within a period of 15 days from today." On September 5, the top court directed Sahara group to deposit Rs 1,000 crore in a separate escrow account within 15 days while allowing it to enter into a joint venture for developing its land at Versova, Mumbai to realise Rs 10,000 crore.
The amount had to be deposited in SEBI-Sahara refund account for returning the investors' money, in compliance with the apex court's 2012 order.
It had said in case the joint venture/development agreement was not filed in the court within 15 days, the 12.15 million square feet land at Versova would be sold on "as is where is" basis.
"The Rs 1,000 crore which will be deposited by a third party will be kept in escrow account, in case approval/permission (for joint venture agreement) is not granted by this court, the amount will be refunded to the said third party," it said.
The top court allowed the Sahara group companies – Sahara India Real Estate Corporation Ltd (SIRECL) and Sahara Housing Investment Corporation Ltd (SHICL) that were ordered to deposit around Rs 25,000 crore in 2012 -- to enter into joint ventures agreement for developing other properties, including the Aamby Valley project at Mumbai.
Pointing out the Sahara Group was in "deep trouble" for not complying with the apex court's order since 2012, the bench said the joint venture or development agreements would be subject to the court's approval.
"The two companies (SIRECL and SHICL) are also permitted to enter into negotiations for joint venture/development agreements with regard to other properties. However, before entering into JVs/development agreements they will seek permission of this court," the bench said.
It clarified the money received from the sale of any properties by the Sahara Group must be deposited in the SEBI-Sahara refund account.
Senior advocate Kapil Sibal, appearing for the Sahara Group of companies, was told, "You are in deep trouble. But, we are still giving you hope. Even after 10 years we are giving you a long rope. For 10 years, we have not seen the light of the day in this matter. We are stuck at the same figure that was 10 years ago. Things have not at all moved." The bench said during the hearing both SIRECL and SHICL made an attempt to reconsider the orders passed on June 19, 2012, August 31, 2012 and December 5, 2012 directing for the creation of SEBI-Sahara refund account for depositing about Rs 25,000 crore (a figure disputed by Sahara Group).
It said no reasons and grounds were made out for the court to reconsider the orders and the directions given in the order of August 31, 2012 and it had attained finality as a review plea was also dismissed on January 8, 2013.
The bench was disinclined to go into the interest over the principal liability fastened by the apex court in 2012 and said as per the 23rd status report filed by SEBI, Rs 15,569.27 crore was lying deposited in SEBI-Sahara refund account.
During the hearing, SEBI referred to its records and said the principal liability on Sahara group was Rs 25,781 crore whereas the company claimed the principal amount asked by the court to be deposited was around Rs 24,029.73 crore.
Senior advocate Arvind Datar, appearing for SEBI, said a sealed cover was submitted by Sahara group in the court with a list of 32 properties.
"If things do not work out at Versova and Aamby Valley, the court may think of opening the sealed cover and selling those 32 properties," he said.
In a series of directions on August 31, 2012, the top court directed SIRECL and SHICL to refund the amount collected from individual investors or group of investors, with 15 per cent interest per annum to SEBI from the date of receipt of the subscription amount till the date of repayment within three months.
In November 2023, Sahara Group chief Subrata Roy, who was ordered to be taken into custody by the court in the matter, died at a private hospital in Mumbai.
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