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The Supreme Court is reviewing proposals from two developers - Oberoi Realty Ltd and Valor Estate Ltd (formerly DB Realty Ltd), for Sahara's Versova property redevelopment while demanding a deposit of INR 1,000 crore from each. This step aims to address Sahara's outstanding liabilities of INR 10,000 crore, part of the INR 25,000 crore owed as per a 2012 directive. The court emphasised there is no restriction on Sahara selling its properties, including through joint ventures, to meet financial obligations. While INR 15,000 crore has been deposited in the SEBI-Sahara Fund, the dispute over the remaining amount continues, and the court is pressing for faster resolution.
Earlier this week, the Supreme Court directed the Securities and Exchange Board of India (SEBI) to evaluate proposals by Oberoi Realty Ltd and Valor Estate Ltd (formerly DB Realty Ltd) for developing Sahara Group's Versova property in Mumbai. Both developers have been asked to deposit INR 1,000 crore via a demand draft, which will not be encashed until the court reaches a final decision. Advertisement
The matter will be revisited in three weeks to determine which developer will proceed with the project. Previously, the court allowed Sahara to sell properties to repay INR 10,000 crore out of the INR 25,000 crore required to refund investors, as per its 2012 order. It clarified there is no restriction on selling assets, including at 10% below circle rates with court approval.
Sahara was granted 30 days to negotiate a joint venture (JV) or land development agreement for its Versova property in order to make up for the shortfall of Rs 10,000 crore in the Sebi-Sahara Fund. 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.
Sahara has been urged to submit a scheme for selling domestic and offshore properties. The court noted that over INR 15,000 crore is currently held in the SEBI-Sahara Fund. Expressing frustration over the prolonged delay in repayment, the bench reminded Sahara of its responsibility to clear the remaining INR 10,000 crore.
While SEBI claimed Sahara's principal liability amounts to INR 25,781 crore, Sahara disputed this, asserting it was closer to INR 24,029.73 crore. In response to challenges faced by Sahara, the court reiterated its approval for joint ventures to develop properties like Versova and Aamby Valley, provided the terms receive court consent.
Senior advocate Arvind Datar, appearing for SEBI, said a sealed cover was submitted by Sahara group in the court with a list of 32 properties. If things do not work out at Versova and Aamby Valley, the court may think of opening the sealed cover and selling those 32 properties.
The Supreme Court's scrutiny of Sahara's ongoing financial obligations underlines the urgency to resolve this decade-long legal and financial impasse. By facilitating joint ventures and offering flexibility in asset sales, the court is extending opportunities for Sahara to fulfil its commitments. However, the apex court remains firm on the timeline and transparency, ensuring that all funds recovered contribute towards refunding affected investors.
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