‘Been over 10 Years’, Sahara Group Has Not Complied with Court’s Order Not Deposited Rs 10k Crore’, SC

The Supreme Court on Tuesday sought a distinct plan from the Sahara Group so that the property can be sold in a transparent manner for depositing around Rs 10,000 crore in SEBI-Sahara refund account for returning investors' money.

New Delhi:The Supreme Court on Tuesday said more than 10 years’ have passed and the Sahara Group has not complied with court’s order and made it clear that no embargo exists on the group to sell its properties for depositing around Rs 10,000 crore in SEBI-Sahara refund account for returning investors' money. The apex court said there is a decree on the Sahara Group that “you have to deposit Rs 25,000 crore, which you have not deposited, despite enough opportunities”.

A three-judge bench led by Justice Sanjiv Khanna said more than 10 years have passed and the Sahara Group has not complied with the order of the court. "SEBI is seeking around Rs 10,000 crore. You need to deposit it. We want a distinct plan, so that the property can be sold in a transparent manner. We will rope in SEBI also in this exercise," said the bench, also comprising justices M M Sundresh and Bela M Trivedi.

Senior advocate Kapil Sibal, representing the Sahara Group, said the company was not given the opportunity to sell its properties. The bench said that there is no embargo on the group in selling its properties for depositing the remaining Rs 10,000 crore out of Rs 25,000 crore ordered by the court. Sibal said no one came forward or is coming forward to purchase the properties as there was embargo on selling them. The bench said that it is not correct to say that you were not given fair chances to sell the properties. “You were given enough chances by this court to sell your properties," the bench said. Senior advocate Pratap Venugopal, representing SEBI, contended before the bench that not all properties are unencumbered.

The apex court said that the properties should not be sold below the circle rate and if it is to be sold below the circle rate, then prior permission of the court is to be sought.

The apex court made it clear to the Sahara Group that SEBI is seeking around Rs 10,000 crore and it should deposit it, and sought a clear plan from the group. “So that the property can be sold in a transparent manner. We will rope in SEBI also in this exercise," said the bench. Venugopal said there is complete ambiguity on when the company would pay the balance amount.

The bench asked the group to bring on record how it proposes to deposit Rs 10,000 crore balance amount and what are the properties which can be sold for recovering the amount.

Sibal requested the apex court to give his client some time to come up with a scheme for depositing the money. He added that in the past, they tried selling many properties including its Aamby Valley project, but all efforts failed as no buyer came forward. After a day-long hearing in the matter, the apex court has scheduled the matter for further hearing on Thursday.

In August 2012, the apex court, in a series of directions, had directed that Sahara Group firms – SIRECL and SHICL – would refund the amount collected from individual investors or group of investors, with interest of 15 per cent per annum to SEBI from the date of receipt of the subscription amount till the date of repayment within three months.

SEBI had told the court that Sahara firms have till date deposited Rs 15,455.70 crore which has been invested in fixed deposits of various nationalised banks and as on September 30, 2020, the total amount along with interest earned in SEBI-Sahara refund account is Rs 22,589.01 crore.

The market regulator had said the contemnors Sahara Group chief and his two firms -- Sahara India Real Estate Corporation Ltd (SIRECL) and Sahara Housing Investment Corporation Ltd (SHICL) -- are in "gross violation" of various orders passed by the apex court.