Supreme Court is looking for the center, Sebi reaction to Sahara's plea to sell 88 properties

New -Delhi: The Supreme Court on Tuesday asked the center and market regulator Securities and Exchange Board of India (Sebi) to respond to a plea by Sahara India Commercial Corporation Ltd (SICCL) to seek approval to sell 88 properties to Adani Properties Private Ltd. A special bank led by Chief Justice Br Gavai, consisting of Justices Surya Kant and MM Sundresh, instructed Sahara to end the Ministry of Finance and the Ministry of Corporate Affairs in the case. The direction comes after the attorney -general Tushar Mehta, who appeared for the center, said that the government should revise Sahara’s proposal to sell these assets, including Anamby Valley in Maharashtra and Sahara Shaher in Lucknow, to the Adani group. “This seems to be a good proposal, subject to various factors to consider. The central government can also investigate and present its opinion before the court,” Mehta submitted, suggesting that the finance secretary and secretary, Ministry of Cooperation, noted that several collaborative associations had invested in Sahara entities. The court also asked Amicus Curiae senior lawyer Shekhar Naphade to investigate existing claims about the properties and prepare a detailed map that identifies assets that are disputed, has free of claims or unclear property rights. It also ordered Sahara to review the demands of workers and coordinate with the Union government, Sebi and the Amicus before the next trial. The case will be heard again on November 17, when the court is expected to decide whether to approve Adani properties for the proposed sale. During the hearing, senior lawyer Mukul Rohatgi, who appeared for Adani Properties, said the company was prepared to acquire all 88 properties at once, even if some assets were subject to disputes to avoid prolonged litigation. The 88 properties listed in Sahara’s plea include Anaamby Valley City (Maharashtra), Hotel Sahara Star (Mumbai), Sahara Shaher (Lucknow), Sahara Ganj (Lucknow), and several large plots of land across various states. Sahara said the returns from the sale in the Sahara Refund account, as earlier by the Supreme Court, will be deposited to repay investors of its optionally fully convertible debentures (OFCDs). The prolonged case The proceedings form part of the prolonged Sahara-Sebi dispute, in which the 2012 Supreme Court ordered Sahara entities to pay more than £ 24,000 by OFCDs to investors via Sebi. Sahara had to repay about £ 25,000 crore, along with 15% annual interest. The group claimed to have deposited about £ 16,000 to date, although Sebi complies that more than £ 9,000 crore remains outstanding. As part of the payout process, the court allowed the release of £ 5,000 of the repayment account to depositors in September, including fees owed to investors of the Sahara Group Cooperative Sociations. It should be noted that over the years, the Supreme Court has allowed Sahara and its group businesses to sell properties to raise money for investors’ repayments, provided the selling price is no less than 90% of the market value. In a similar step in September 2024, the court allowed Sahara to form a joint venture to develop its Versova property in Mumbai, with the aim of collecting £ 10,000 crore, with the order that all returns in the SEBI -Sahara repayment account be deposited. Property developer Oberoi Realty later expressed interest and deposited £ 1,000 crore with the Supreme Court. However, the funds were refunded after it was found that the Versova plot included suspected mangrove soil, which could not be developed. The court has since asked the Ministry of Environmental Affairs and the Maharashtra government to explain whether the 106-acre Versova plot is classified as mangrove Forest. The case remains pending. The legal problems of Sahara Group date from 2010, when Sebi’s head, Subrata Roy, and his firms banned from raising funds by optionally fully convertible debentures (OFCDs), citing regulatory offenses. Sahara disputed the ruling in the Allahabad High Court, which temporarily prevented Sebi from acting. However, the Delhi High Court later issued a warrant against Roy over allegations of investor fraud. The Supreme Court has finally ordered Sahara to reveal details of its OFCD schemes and repay investors with 15% interest. In 2014, Subrata Roy was arrested for non-compliance and sent to the Tihar jail. He was released on parole in 2016, but still faced legal investigation. In November 2023, Roy died in a private hospital in Mumbai after a long -lasting disease.