The Supreme Court on Tuesday clarified that there is no restriction on Sahara Group selling its properties to deposit approximately Rs 10,000 crore into the SEBI-Sahara refund account, a sum meant to reimburse investors as per earlier court directives. This development aims to resolve longstanding disputes over the repayment of investor funds.
In 2012, the Supreme Court had ordered Sahara Group’s firms, SIRECL and SHICL, to refund money amassed from investors, with a 15% annual interest, following which the Group was supposed to have deposited a total of Rs 25,000 crore. However, discrepancies in payments led to prolonged legal battles and compliance issues. The Sahara Group has so far deposited Rs 15,455.70 crore, with the outstanding amount drawing intense scrutiny over the years.
During the hearing, a bench comprising Justices Sanjiv Khanna, M M Sundresh, and Bela M Trivedi expressed dissatisfaction over Sahara’s delay in fulfilling these obligations. Senior advocate Kapil Sibal, representing Sahara, argued that the perceived restrictions on property sales hindered the Group’s ability to raise the necessary funds. He noted that previous attempts to sell high-value assets, like the Aamby Valley project, were unsuccessful due to a lack of buyers, partly believed to be due to an informal embargo on such sales.
Justice Khanna responded to these concerns by emphasizing that the only condition imposed was that properties should not be sold below the circle rate without court permission, thereby dismissing the notion of a broader sales embargo. He encouraged Sahara to propose a concrete plan for liquidating assets in a transparent manner to meet the court’s financial demands.
SEBI’s counsel, senior advocate Pratap Venugopal, highlighted ongoing issues with some properties being encumbered, adding layers of complexity to the asset liquidation process. The bench has requested Sahara to list unencumbered properties that could be sold and to outline a detailed plan for settling the remaining dues.
This case marks a critical juncture for the Sahara Group, which has seen its share of legal and financial troubles, including the 2023 passing of its chief Subrata Roy. The Supreme Court’s latest order not only reiterates the need for Sahara to comply with its financial obligations but also sets the stage for potential resolution of one of India’s most protracted corporate-legal dramas.
