In a pivotal decision on Thursday, the Supreme Court mandated the Sahara Group to deposit Rs 1,000 crore into a dedicated escrow account within a tight deadline of 15 days. Additionally, the court greenlighted the group’s proposal to enter into a joint venture for the development of its Versova land in Mumbai, aiming to amass a substantial sum of Rs 10,000 crore.
This hefty sum is earmarked for the SEBI-Sahara refund account to ensure the return of investors’ money, a continuation of the apex court’s stringent 2012 directives. The decision, delivered by a bench comprising Justices Sanjiv Khanna, MM Sundresh, and Bela M. Trivedi, further stipulates severe repercussions should Sahara fail to file the joint venture or development agreement within the allotted timeframe. Failure to comply would lead the court to initiate the sale of the expansive 12.15 million square feet Versova land on an “as is where is” basis.
“The Rs 1,000 crore, to be deposited by a third party, will remain in the escrow account. Should the court deny approval for the joint venture agreement, this amount will be refunded to the third party involved,” the bench elaborated, setting the next hearing for a month later.
In a broader allowance, the court has also permitted Sahara’s entities—Sahara India Real Estate Corporation Ltd (SIRECL) and Sahara Housing Investment Corporation Ltd (SHICL)—to explore joint ventures for the development of other properties, including the notable Aamby Valley project in Mumbai.
Addressing the group’s compliance issues, the bench remarked on Sahara’s prolonged struggle to adhere to the 2012 orders. It emphasized that any joint venture or development agreements must receive the court’s nod before proceeding. “Before entering into any joint ventures or development agreements, the companies will seek permission from this court,” it asserted.
The sale of any Sahara properties must contribute directly to the SEBI-Sahara refund account, with the court setting clear transaction guidelines to ensure fair market compliance. During the prolonged hearing, Senior Advocate Kapil Sibal, representing the Sahara Group, presented a roadmap for depositing funds into the SEBI-Sahara account. However, the bench criticized the proposed timeline and the piecemeal deposit strategy, urging immediate compliance and a more expedited resolution.
