EOW Registers Probe into Sahara Group's Land Sale Irregularities
ECONOMY & POLICY

EOW Registers Probe into Sahara Group's Land Sale Irregularities

The Economic Offences Wing (EOW) in Bhopal has initiated a Preliminary Enquiry (PE) to investigate alleged irregularities in the Sahara Group’s land transactions, a release confirmed. The inquiry targets officials of the Sahara Housing Corporation Investment Group, multiple companies authorized for land sales by the Sahara Group, concerned revenue officers, and others involved.

The Sahara Group had raised funds from investors for the development of Sahara City across various cities. The real estate arm, Sahara India Real Estate Corporation Limited, had purchased land with the promise of constructing the city. However, as per a 2014 Supreme Court ruling, the Group was granted permission to sell its properties to repay investors, on the condition that the sale proceeds be deposited into the SEBI-Sahara Refund account at the Bank of India, Mumbai.

In compliance with the ruling, Sahara Group sold approximately 110 acres in Maksi, Bhopal for Rs 48 million, and 100 acres each in Jabalpur and Katni for Rs 20 million each, to M/S Synap Real Estate and M/S Naisa Devbuild. These sales accounted for a total of 310 acres for Rs 90 million. Notably, the Bhopal land had been valued at Rs 125 million in 2014 by an independent evaluation, conducted under the Supreme Court’s directive.

However, despite the clear order to deposit the proceeds into the SEBI account, Sahara Group allegedly violated this directive by diverting funds to Sahara India Real Estate Limited, Sahara Housing Investment Corporation, and associated shell companies. This prompted the EOW Bhopal unit to register the PE, aiming to investigate the breach of Supreme Court orders and the mismanagement of funds.

In a related case, the project was later transferred to Man Realty Ltd and subsequently taken over by Purva Oak under the SARFAESI provisions. The Tribunal acknowledged the complainants as allottees based on their payments to the initial promoter and emphasized that the obligations transferred to the new promoter remained valid. Man Global Ltd had received 30% advance payments from the eight complainants in 2012 for flats in a proposed project at Thane. However, due to delays and failure to issue allotment letters, the promoter issued refund cheques, which were later blocked by oral instructions.

The Tribunal found that Man Global had violated provisions by taking advance payments beyond the threshold, leading to a legal responsibility to execute agreements by the current promoter, Purva Oak.

The EOW’s ongoing investigation into the Sahara Group's land sale deals highlights the continued scrutiny of large real estate transactions in India and the enforcement of investor protection laws.

The Economic Offences Wing (EOW) in Bhopal has initiated a Preliminary Enquiry (PE) to investigate alleged irregularities in the Sahara Group’s land transactions, a release confirmed. The inquiry targets officials of the Sahara Housing Corporation Investment Group, multiple companies authorized for land sales by the Sahara Group, concerned revenue officers, and others involved. The Sahara Group had raised funds from investors for the development of Sahara City across various cities. The real estate arm, Sahara India Real Estate Corporation Limited, had purchased land with the promise of constructing the city. However, as per a 2014 Supreme Court ruling, the Group was granted permission to sell its properties to repay investors, on the condition that the sale proceeds be deposited into the SEBI-Sahara Refund account at the Bank of India, Mumbai. In compliance with the ruling, Sahara Group sold approximately 110 acres in Maksi, Bhopal for Rs 48 million, and 100 acres each in Jabalpur and Katni for Rs 20 million each, to M/S Synap Real Estate and M/S Naisa Devbuild. These sales accounted for a total of 310 acres for Rs 90 million. Notably, the Bhopal land had been valued at Rs 125 million in 2014 by an independent evaluation, conducted under the Supreme Court’s directive. However, despite the clear order to deposit the proceeds into the SEBI account, Sahara Group allegedly violated this directive by diverting funds to Sahara India Real Estate Limited, Sahara Housing Investment Corporation, and associated shell companies. This prompted the EOW Bhopal unit to register the PE, aiming to investigate the breach of Supreme Court orders and the mismanagement of funds. In a related case, the project was later transferred to Man Realty Ltd and subsequently taken over by Purva Oak under the SARFAESI provisions. The Tribunal acknowledged the complainants as allottees based on their payments to the initial promoter and emphasized that the obligations transferred to the new promoter remained valid. Man Global Ltd had received 30% advance payments from the eight complainants in 2012 for flats in a proposed project at Thane. However, due to delays and failure to issue allotment letters, the promoter issued refund cheques, which were later blocked by oral instructions. The Tribunal found that Man Global had violated provisions by taking advance payments beyond the threshold, leading to a legal responsibility to execute agreements by the current promoter, Purva Oak. The EOW’s ongoing investigation into the Sahara Group's land sale deals highlights the continued scrutiny of large real estate transactions in India and the enforcement of investor protection laws.

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