The Supreme Court of India.
Credit: PTI Photo
New Delhi: The Supreme Court on Tuesday said there is no embargo on Sahara Group to sell its properties for depositing around Rs 10,000 crore in Sebi-Sahara refund account for returning investors' money.
In a series of directions on August 31, 2012, the top court had directed that Sahara Group firms – SIRECL and SHICL – would refund the amount collected from individual investors or group of investors, with interest of 15 per cent per annum to Sebi from the date of receipt of the subscription amount till the date of repayment within three months.
A bench of Justices Sanjiv Khanna, M M Sundresh and Bela M Trivedi expressed its displeasure over the Sahara Group not depositing the amount as directed by the court. Senior advocate Kapil Sibal, appearing for the Sahara Group, said the company was not given opportunity to sell its properties and moreover no one came forward or is coming forward to purchase the properties as there was embargo on selling them.
"There is no embargo on Sahara Group in selling its properties for depositing the remaining Rs 10,000 crore out of Rs 25,000 crore ordered by the court. Only thing was that it should not be sold below the circle rate and if it is to be sold below the circle rate, then prior permission of the court is to be sought," the bench told Sibal.
It said more than 10 years have passed and the Sahara Group has not complied with the order of the court.
"Sebi is seeking around Rs 10,000 crore. You need to deposit it. We want a distinct plan, so that the property can be sold in a transparent manner. We will rope in Sebi also in this exercise," the bench further added.
Justice Khanna told Sibal that selling properties below the circle rate is neither in the interest of Sebi nor the Sahara Group and there are enough buyers available in the market, if unencumbered properties are offered for sale.
"It is incorrect to say that you were not given fair chances to sell the properties. You were given enough chances by this court to sell your properties," the bench said.
Senior advocate Pratap Venugopal, appearing for Sebi, said not all properties are unencumbered and there is complete ambiguity on when the company would pay the balance amount.
The bench then asked Sibal to spell out a plan on how the Group proposes to deposit Rs 10,000 crore balance amount and what are the properties which can be sold for recovering the amount.
"There is decree on you (Sahara Group) that you have to deposit Rs 25,000 crore, which you have not deposited, despite enough opportunities," the bench said.
Sibal urged the court to give the company some time for giving a scheme for depositing the money and submitted that in the past, they tried selling many properties including its Aamby Valley project, but all efforts failed as no buyer came forward.
"Let us give a scheme, this court can modify it if it does not find it appropriate but let us give it," Sibal told the bench in the day-long hearing of the matter.
The bench said it will deal with the issue on Thursday and dealt with a number of applications related to flat buyers, operational creditors and other parties seeking various reliefs like refund of money.
It allowed Sibal to give the list of unencumbered properties which can be sold in the open market and a scheme for depositing the money.
In November 2023, Sahara Group chief Subrata Roy, who was earlier ordered to be taken into custody by the court in the matter passed away at a private hospital in Mumbai.
Earlier, Sebi told the court that in terms of the 2012 order of the top court, Sahara firms have till date deposited Rs 15,455.70 crore which has been invested in fixed deposits of various nationalised banks and as on September 30, 2020, the total amount along with interest earned in SEBI-Sahara refund account is Rs 22,589.01 crore.
It had said the contemnors Sahara Group chief and his two firms -- Sahara India Real Estate Corporation Ltd (SIRECL) and Sahara Housing Investment Corporation Ltd (SHICL) -- are in "gross violation" of various orders passed by the court regarding the deposit of "entire monies" collected along with the interest.
A contemnor is a person or entity which has been held to be in contempt of court.
The market regulator said out of the total outstanding principal liability of Rs 25,781.32 crore, Sebi has realised only Rs 15,455.70 crore from the Saharas and from sale of properties of the group.
"The balance amount of Rs 10,325.62 crore (principal amount) is still to be paid by Sahara Group. It is submitted that as on September 30, 2020, total net liability of Saharas was Rs 62,602.90 crore taking into consideration interest at Rs 15 per cent in terms of directions of this court dated August 31, 2012," SEBI had said in its 2020 application filed in the matter.