Supreme Court Seeks Union & SEBI Responses On Sahara Company's Plea To Sell Assets To Adani Properties Ltd

The Supreme Court on Tuesday (October 14) sought the response of the Union Government and SEBI on the applications filed by Sahara India Commercial Corporation Ltd seeking permission to sell its 88 properties, including Amby Valley in Maharashtra and Sahara Seher in Lucknow, to Adani Properties Pvt Ltd.

The Court directed Sahara to implead the Ministries of Finance and Corporate Affairs in its application.

A bench comprising Chief Justice of India BR Gavai, Justice Surya Kant and Justice MM Sundresh also directed the parties, who have claims over the properties sought to be sold by Sahara, to submit them before amicus curiae Senior Advocate Shekhar Naphade. The amicus was requested to prepare a chart identifying which properties were disputed, which were free from claims, and where ownership rights remained unclear. The Court also directed Sahara to examine the claims of its workers on the next date of hearing and asked the Union of India, SEBI, and the amicus to file their responses to Sahara's application.

The matter will be next considered on November 17.

In its application, the company said that despite several efforts, SEBI has not been able to sell the attached assets and that the group's capacity to manage and dispose of its properties has weakened following the death of its founder Subrata Roy. Sahara told the court that many of its properties are under various restraint orders and sought judicial approval so that the sale proceeds can be utilised to satisfy the outstanding liabilities. It has also informed the court that a term sheet has been executed with Adani Properties for the proposed sale of 88 assets.

Senior Advocate Kapil Sibal, for Sahara, told the Court that they had proposed a comprehensive plan under which the sale proceeds from the properties, estimated at over ₹12,000 crore, would be deposited towards its outstanding liabilities. Solicitor General of India Tushar Mehta said the proposal appeared reasonable but required consideration by the Union Government, and requested that the secretaries of the relevant ministries, the Ministry of Finance and the Ministry of Corporate Affairs, be impleaded.

Senior Advocate Arvind Datar, appearing for SEBI stated that Sahara could sell its properties provided the sale price was not less than 90% of the market value and that SEBI's intervention was not necessary as long as the transaction remained under the Court's supervision. The SEBI told the Court that Sahara group still owed Rs 9000 crores towards the SEBI-Sahara account.

Senior Advocate Gopal Sankarnarayanan pointed out that Sahara's application covered 88 properties, several of which were already under dispute or subject to agreements with other parties, and suggested that an amicus curiae be appointed to examine the claims.

Senior Advocate Mukul Rohatgi, appearing for Adani Properties, said his client was ready to acquire all 88 properties in one go, even with existing claims, to avoid further litigation. The Court observed that there were competing interests among several parties and that a detailed examination of the properties was required before any approval could be granted.

The application was filed in the litigation arising out of the Sahara–SEBI case, in which the Supreme Court had directed Sahara entities to refund thousands of crores to investors who had subscribed to Optionally Fully Convertible Debentures (OFCDs). In 2012, the Court ordered Sahara to deposit over ₹24,000 crore with SEBI for repayment to investors. Over the years, Sahara has claimed to have deposited a substantial portion of the amount, but SEBI maintains that over ₹9,000 crore remains outstanding.

Recently, on September 12, the Court permitted the disbursal of Rs 5000 crores from the SEBI-Sahara account to the depositors.

Case : SECURITIES AND EXCHANGE BOARD OF INDIA v. SUBRATA ROY SAHARA AND ORS. AND ORS.| CONMT.PET.(C) No. 1820-1822/2017 in CONMT.PET.(C) No. 413/2012 In C.A. No. 9833/2011