SEBI Should Examine Proposals To Develop Sahara Group's Mumbai Land: SC

Moneylife Digital Team 09 January 2025

Economy & Nation

The Supreme Court has asked market regulator Securities and Exchange Board of India (SEBI) and amicus curiae Shekhar Naphade to examine two separate proposals from Oberoi Realty and Valor Estate Ltd (erstwhile DB Realty Ltd) for developing Sahara group's land at Versova in Mumbai for returning investors' money.

A special bench comprising chief justice of India Sanjiv Khanna, justice MM Sundresh and justice Bela M Trivedi asked the two companies interested in entering into joint ventures (JVs) with the Sahara group to deposit Rs1,000 crore with the apex court registry within 15 days with a caveat that these would not be encashed for three weeks. The two developers are also asked to submit applications for approval of the proposed development plan through the JV.

"SEBI will conduct its 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," the bench added.

According to a report from Times of India (ToI), senior counsel Kapil Sibal, representing the Sahara group, told the SC that if the proposals submitted by Oberoi Realty, a listed company known for its high-end suburban condos, comes through, then it would be able to pay up the balance Rs8,000 crore much before the 2025-end deadline.

Appearing for Oberoi Realty, senior advocate AM Singhvi said the development of the Versova land would be carried out over the next 14 years, during which Sahara group would get Rs21,000 crore.

Mumbai-based Valor Estate Ltd (VEL), formerly known as DB Realty Ltd, also moved to the top court, showing interest in the Versova land of the Sahara Group.

Earlier in September, the apex court directed the Sahara group to deposit Rs1,000 crore in a separate escrow account within 15 days while allowing it to enter into a JV to develop its land at Versova and realise Rs10,000 crore.

The SC allowed two Sahara group companies – Sahara India Real Estate Corporation Ltd (SIRECL) and Sahara Housing Investment Corporation Ltd (SHICL)—to enter into JV agreements for developing other properties, including the Aamby Valley project.

Senior counsel Arvind Datar, representing SEBI, informed the apex court, while referring to records, that the principal liability on Sahara group is Rs25,781 crore. Sahara group claimed the principal amount asked by the court to be deposited is about Rs24,029.73 crore.

Mr Datar pointed out that 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," he said.

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