The Supreme Court has directed the Securities and Exchange Board of India (SEBI) and the amicus curiae to scrutinize two development proposals from firms interested in Sahara Group’s land in Mumbai. This decision aims to facilitate the return of investors’ funds tied up in the long-standing legal battle with Sahara.
On Wednesday, a special bench led by Chief Justice of India Sanjiv Khanna, alongside Justices M M Sundresh and Bela M Trivedi, reviewed submissions regarding joint ventures proposed by companies eager to develop the Versova land owned by Sahara Group. Valor Estate Ltd (formerly DB Realty Ltd) is among the firms that have shown interest and has offered to pay Rs 1,000 crore upfront as part of the development deal.
Senior advocate Manan Kumar Mishra, representing Valor Estate, confirmed the financial commitment to the court. In response, the Supreme Court ordered that a copy of the proposals from the interested companies be given to the advocates on record for SEBI and amicus curiae senior advocate Shekhar Naphade, to enable a thorough evaluation.
The court emphasized the necessity of SEBI conducting its own investigation into the proposals, stating, “The SEBI will 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.”
The Supreme Court’s intervention comes after previous directions issued on September 5, requiring Sahara to deposit Rs 1,000 crore in a separate escrow account. This measure was part of a broader mandate to realize Rs 10,000 crore by developing its land at Versova, Mumbai, for repaying investors as per the court’s 2012 order.
Senior advocate Kapil Sibal, representing the Sahara Group, highlighted the ongoing challenges faced by the group, noting the persistent legal hurdles over the past decade. The court acknowledged these difficulties but stressed the need for continued efforts to resolve the financial obligations to investors.
Further, SEBI’s legal representative, senior advocate Arvind Datar, hinted at alternative measures if the current proposals do not materialize, suggesting the potential sale of additional properties listed by Sahara in a sealed cover to the court.
