Supreme Court Allows Sahara Group to Sell Properties to Pay ₹10,000 Crore Investor Dues

The Supreme Court on Tuesday clarified that there is no restriction on the Sahara Group from selling its properties to raise ₹10,000 crore, a portion of the ₹25,000 crore it owes to investors, as per the apex court's 2012 order. The court has directed the Sahara Group to submit a detailed plan by September 5, outlining how it intends to sell its domestic and offshore properties to meet this financial obligation.

During the hearing, the court, comprising Justices Sanjiv Khanna, Bela Trivedi, and MM Sundresh, noted that the Securities and Exchange Board of India (SEBI) currently holds around ₹15,000 crore in the SEBI-Sahara Fund. However, the court expressed concerns over the remaining ₹10,000 crore, questioning how the Sahara Group plans to raise this amount.

"More than 10 years have passed, and you still haven't deposited the money. SEBI is seeking the remaining ₹10,000 crore…How will you muster the remaining ₹10,000 crore?" the bench questioned.

Senior advocate Kapil Sibal, representing the Sahara Group, argued that the company had not been given a fair opportunity to sell its properties, claiming that potential buyers were reluctant to purchase due to the legal controversies surrounding the group. In response, the court rejected this claim, stating, "You have been given enough chances…It is incorrect to claim that Sahara did not receive a fair opportunity to sell the properties. There is no embargo on the Sahara family selling assets. Even less than the circle rate by 10% is allowed if the court’s approval is there."

Justice Khanna reiterated that there are no legal barriers preventing the sale of Sahara's properties, allowing the group the flexibility to sell its assets at competitive prices with court approval.

Background of the Case

The issue dates back to August 31, 2012, when the Supreme Court upheld an order by SEBI directing Sahara India Real Estate Corp and Sahara Housing Investment Corp to refund money to investors with 15% interest. The order was made after it was found that the companies had raised funds through optionally fully-convertible bonds from nearly 30 million investors without adhering to regulatory guidelines.

As per the court's directive, the refunded amounts were to be deposited with SEBI. The court further ordered that if SEBI was unable to locate the investors or their heirs after verifying the details provided, the unclaimed funds would be transferred to the Government of India.

The ongoing legal battle has seen the Sahara Group struggling to meet its financial obligations, with the Supreme Court now urging the company to take concrete steps to resolve the matter.

The case highlights the complex challenges involved in corporate regulation and investor protection, as well as the long legal processes that can ensue when large sums of money and millions of investors are involved. The Supreme Court's decision to allow the sale of properties is seen as a critical step toward resolving the decade-long issue, though the road ahead remains uncertain for the Sahara Group.