Supreme Court Adjourns Sahara's Plea To Sell Assets To Adani Properties Ltd As Union Seeks Time To Respond

The Central Government on Monday sought more time to respond to 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.

Accepting the request for four weeks' time made by Solicitor General of India Tushar Mehta, the bench comprising Chief Justice of India BR Gavai, Justice Surya Kant and Justice MM Sundresh posted the matters after six weeks.

The Court also adjourned the applications filed by employees seeking payment of their pending salaries from the Sahara Group companies. Senior Advocate Kapil Sibal appeared for Sahara. SG also requested that the Ministry of Cooperation be also impleaded in the matter, as many co-operative societies are involved. Senior Advocate Shekhar Naphade, the amicus curiae in the matter, submitted that he is receiving claims over many properties which the Sahara group has not disclosed. He therefore requested that the company be directed to publish the details of the properties on the website. The Court however did not pass any directions today.

On the last hearing, the Court had sought the response of the Union Government and SEBI on the applications filed by Sahara.

Previously, the Court 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.

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.

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