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.

"Join industry leaders at RAHSTA Expo, India's premier platform for roads, highways and traffic infrastructure. Register now to explore innovations, network with experts and shape the future of mobility."

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.

Next Story
Infrastructure Urban

ABS Marine Sees CRISIL Credit Rating Upgrade

ABS Marine Services has secured an upgrade to its long term and short term credit ratings from CRISIL, reflecting improved profitability and revenue growth through long term contracts. CRISIL moved the long term rating from BBB+/Stable to A-/Stable and revised the short term rating from A2 to A2+. The action signals strengthened financial metrics and operational resilience. The company benefited from durable client relationships with firms such as ONGC and Schlumberger. The rating decision followed stronger cash flows and an enlarged bank loan facility, which increased from Rs 3,705 million (m..

Next Story
Infrastructure Transport

Project BRAHMANK Marks 16 Years Of Strategic Roads In Arunachal

Project BRAHMANK is marking 16 years of work to establish strategic road and bridge links across Arunachal Pradesh, maintaining and developing 811 kilometres of roads and nearly 86 bridges that range from small culverts to large steel and arch bridges. These transport links are described as critical for ensuring year-round movement of defence personnel, equipment and essential supplies while improving everyday travel for people in remote villages. The project balances national security requirements with regional development by focusing on reliable access in challenging terrain. Notable enginee..

Next Story
Infrastructure Transport

Longleng CSOs Give One Week Ultimatum Over Two-Lane Highway

Civil society organisations (CSOs) in Longleng district have demanded immediate restoration of the deteriorating Changtongya–Longleng two-lane road and sought a detailed status report on the stalled construction within one week. The demand followed a consultative meeting convened under the Phom Peoples' Council (PPC) to discuss welfare and development concerns. PPC president YB Angam Phom said prolonged non-maintenance had caused hardship to commuters and affected transportation, local commerce and the district's development. The meeting urged authorities to undertake immediate restoration a..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement