+
SC: Review Proposals of Firms Developing Sahara Group's Land
ECONOMY & POLICY

SC: Review Proposals of Firms Developing Sahara Group's Land

The Supreme Court asked market regulator SEBI and the amicus curiae to examine two separate proposals of two firms for developing Sahara group's land in Mumbai to return investors' money. A special bench comprising Chief Justice of India Sanjiv Khanna and Justices M M Sundresh and Bela M Trivedi said the companies, which were interested in entering into joint ventures with the Sahara Group, would have to deposit Rs 10 billion with the apex court registry within 15 days. 

Mumbai-based Valor Estate Ltd (VEL), formerly known as DB Realty Ltd, also moved the top court showing interest in Versova land of the Sahara Group. Senior advocate Manan Kumar Mishra, appearing for the VEL, said it was willing to pay Rs 10 billion upfront.A copy of the proposals of the companies would be provided to the advocates on record of the SEBI and amicus curiae senior advocate Shekhar Naphade. 

"The SEBI (Securities and Exchange Board of India) will conduct their own investigation and 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," said the bench. 

While posting the matter after three weeks, the court said, "Valor (VEL) has undertaken to deposit Rs 1000 crores in this court by way of a demand draft within a period of 15 days from today." 

It had said in case the joint venture/development agreement was not filed in the court within 15 days, the 12.15 million square feet land at Versova would be sold on "as is where is" basis. 

The top court allowed the Sahara group companies - Sahara India Real Estate Corporation Ltd (SIRECL) and Sahara Housing Investment Corporation Ltd (SHICL) that were ordered to deposit around Rs 250 billion in 2012 -- to enter into joint ventures agreement for developing other properties, including the Aamby Valley project at Mumbai. 

Pointing out the Sahara Group was in "deep trouble" for not complying with the apex court's order since 2012, the bench said the joint venture or development agreements would be subject to the court's approval. 
"The two companies (SIRECL and SHICL) are also permitted to enter into negotiations for joint venture/development agreements with regard to other properties. However, before entering into JVs/development agreements they will seek permission of this court," the bench said. 

It clarified the money received from the sale of any properties by the Sahara Group must be deposited in the SEBI-Sahara refund account. 

Senior advocate Kapil Sibal, appearing for the Sahara Group of companies, was told, "You are in deep trouble. But, we are still giving you hope. Even after 10 years we are giving you a long rope. For 10 years, we have not seen the light of the day in this matter. We are stuck at the same figure that was 10 years ago. Things have not at all moved." 

The bench said during the hearing both SIRECL and SHICL made an attempt to reconsider the orders passed on June 19, 2012, August 31, 2012 and December 5, 2012 directing for the creation of SEBI-Sahara refund account for depositing about Rs 250 billion (a figure disputed by Sahara Group).   

The Supreme Court asked market regulator SEBI and the amicus curiae to examine two separate proposals of two firms for developing Sahara group's land in Mumbai to return investors' money. A special bench comprising Chief Justice of India Sanjiv Khanna and Justices M M Sundresh and Bela M Trivedi said the companies, which were interested in entering into joint ventures with the Sahara Group, would have to deposit Rs 10 billion with the apex court registry within 15 days. Mumbai-based Valor Estate Ltd (VEL), formerly known as DB Realty Ltd, also moved the top court showing interest in Versova land of the Sahara Group. Senior advocate Manan Kumar Mishra, appearing for the VEL, said it was willing to pay Rs 10 billion upfront.A copy of the proposals of the companies would be provided to the advocates on record of the SEBI and amicus curiae senior advocate Shekhar Naphade. The SEBI (Securities and Exchange Board of India) will conduct their own investigation and 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, said the bench. While posting the matter after three weeks, the court said, Valor (VEL) has undertaken to deposit Rs 1000 crores in this court by way of a demand draft within a period of 15 days from today. It had said in case the joint venture/development agreement was not filed in the court within 15 days, the 12.15 million square feet land at Versova would be sold on as is where is basis. The top court allowed the Sahara group companies - Sahara India Real Estate Corporation Ltd (SIRECL) and Sahara Housing Investment Corporation Ltd (SHICL) that were ordered to deposit around Rs 250 billion in 2012 -- to enter into joint ventures agreement for developing other properties, including the Aamby Valley project at Mumbai. Pointing out the Sahara Group was in deep trouble for not complying with the apex court's order since 2012, the bench said the joint venture or development agreements would be subject to the court's approval. The two companies (SIRECL and SHICL) are also permitted to enter into negotiations for joint venture/development agreements with regard to other properties. However, before entering into JVs/development agreements they will seek permission of this court, the bench said. It clarified the money received from the sale of any properties by the Sahara Group must be deposited in the SEBI-Sahara refund account. Senior advocate Kapil Sibal, appearing for the Sahara Group of companies, was told, You are in deep trouble. But, we are still giving you hope. Even after 10 years we are giving you a long rope. For 10 years, we have not seen the light of the day in this matter. We are stuck at the same figure that was 10 years ago. Things have not at all moved. The bench said during the hearing both SIRECL and SHICL made an attempt to reconsider the orders passed on June 19, 2012, August 31, 2012 and December 5, 2012 directing for the creation of SEBI-Sahara refund account for depositing about Rs 250 billion (a figure disputed by Sahara Group).   

Next Story
Products

Sleek Kitchen Solutions

Häfele has launched the Profin range of aluminium profiles for open, modern kitchens. The collection includes Gola Profiles, Stack Modular Shelving, Rail Door Profiles, and Strike Shelving System—all designed for seamless integration and contemporary appeal. Available in five finishes—Silver, Graphite, Gold, Rose Gold, and Dark Bronze—the profiles offer both subtle elegance and striking contrast.Contact: HäfeleWebsite: www.hafeleindia.com/en/ ..

Next Story
Technology

DEV IT Wins Rs 40.4 Mn tech deal with Alivus Lifesciences

Dev Information Technology, a global IT services company providing Cloud Services, Digital Transformation, Enterprise Applications, and Managed IT Services, with products like Talligence and ByteSigner, has secured significant orders worth approximately Rs 40.4 million from Alivus Lifesciences. The wins reflect DEVIT’s growing presence in the enterprise technology space and its ability to deliver value-driven IT solutions.The engagement includes a significant order of Rs 30.60 million for Microsoft Select Plus perpetual licenses. While the licenses will be billed directly by the Licensing So..

Next Story
Infrastructure Energy

CRISIL Rates ACME Raisar Solar's Rs 8.80 Bn Loan 'AA-/Stable'

CRISIL Ratings has assigned 'CRISIL AA-/Stable’ rating to long-term bank facilities of ACME Raisar Solar Energy, wholly owned subsidiary of ACME Solar Holdings. This rating is assigned to 300 MW (AC) capacity located in Fategarh, Rajasthan for its Rs 8.90 billion term loan facility from REC.CRISIL cited robust revenue visibility, strong financial metrics & debt servicing capability, and a secure cash flow mechanism as key strengths underpinning AA-/Stable rating, one of the highest ratings accorded by the rating agencies. The rating reflects ARSEPL's strong operational profile supported by a..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?