The Union authorities has sought extra time to file its response to a plea by financially-stressed Sahara India Business Company Ltd (SICCL), which is looking for the Supreme Courtroom’s nod to promote 88 properties, together with Aamby Valley in Maharashtra and Sahara Shaher in Lucknow, to Adani Properties Pvt. Ltd in a ₹12,000-crore deal, and repay its money owed.
Solicitor basic Tushar Mehta, showing for the Centre, made the request on Monday earlier than a bench of Chief Justice of India B.R. Gavai and justices Surya Kant and M.M. Sundresh. The courtroom granted the request and adjourned the matter for six weeks. Mehta additionally requested that the ministry of finance and the ministry of cooperation be added as events to the proceedings, pointing to the involvement of a number of cooperative societies that had invested in, or have been financially appreciated to Sahara group entities.
The SC bench additionally postponed the listening to of functions filed by Sahara staff looking for launch of their pending salaries. Senior advocate Shekhar Naphade, the amicus curiae, knowledgeable the courtroom that he continues to obtain claims over properties that Sahara has not disclosed. He steered that the corporate be directed to publish a complete record of its belongings on its web site. The courtroom, nonetheless, didn’t move any order on this.
At a earlier listening to on 14 October, the apex courtroom had requested the Centre and market regulator Securities and Change Board of India (Sebi) to file their response to Sahara’s functions. It additionally directed all claimants to current their claims earlier than the amicus, who was requested to organize a chart classifying the properties as disputed, undisputed, or unclear by way of possession. Sahara was advised to look at the claims filed by its staff, whereas the Centre, Sebi and the amicus have been instructed to submit their replies.
In its plea, Sahara stated Sebi has not been capable of promote most of its connected properties regardless of a number of makes an attempt, and that the group’s capacity to handle or eliminate belongings has weakened for the reason that demise of its founder, Subrata Roy, in 2023. With many properties beneath restraint orders, the group has sought the courtroom’s permission to proceed with the gross sales in order that the funds can be utilized to clear its liabilities. Sahara has already signed a time period sheet with Adani Properties for the proposed transaction.
Throughout the October 14 listening to, Sahara advised the Supreme Courtroom that Adani Properties had agreed to pay about ₹12,000 crore for the 88 belongings beneath the time period sheet executed between the events.
Throughout that listening to, senior advocate Mukul Rohatgi, showing for Adani Properties, stated the corporate was prepared to accumulate all 88 properties in a single go, even when some belongings have been topic to disputes, with the intention to keep away from extended litigation.
The record of belongings contains Aamby Valley Metropolis, Lodge Sahara Star in Mumbai, Sahara Shaher and Sahara Ganj in Lucknow, together with a number of giant land parcels throughout states. Sahara has stated that every one sale proceeds will probably be deposited within the Sebi–Sahara Refund Account, as directed by the Supreme Courtroom, to repay buyers of its optionally absolutely convertible debentures (OFCDs) – hybrid monetary devices that mix the options of each fairness and debt, and provides the buyers the choice to transform them into shares or maintain them until maturity.
An extended-running dispute
The case is a part of the persevering with Sahara–Sebi litigation, which started greater than a decade in the past. In 2012, the Supreme Courtroom ordered Sahara entities to refund over ₹24,000 crore illegally raised by means of OFCDs, with a 15% annual curiosity. Sahara says it has deposited round ₹16,000 crore thus far, whereas Sebi maintains that greater than ₹9,000 crore continues to be excellent.
In September, the courtroom allowed the discharge of ₹5,000 crore from the refund account to depositors, together with buyers in Sahara Group cooperative societies.
The Supreme Courtroom has, over time, permitted Sahara to promote belongings to lift funds for repayments, topic to the situation that the sale value isn’t lower than 90% of market worth of the asset concerned.
Sahara’s authorized troubles date again to 2010, when Sebi barred Subrata Roy and his firms from elevating funds by means of OFCDs, citing regulatory violations. Sahara initially obtained interim reduction from the Allahabad Excessive Courtroom, however the Delhi Excessive Courtroom later issued a warrant in opposition to Roy over investor complaints. The Supreme Courtroom finally directed Sahara to reveal the small print of its OFCD schemes and refund buyers with curiosity.
Roy was arrested in 2014 for non-compliance and despatched to Tihar Jail in Delhi He was launched on parole in 2016, however remained beneath scrutiny till his demise in November 2023 after a protracted sickness.
