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SC Orders Auction Of Sahara’s Ambey Valley: Summons To Roy For Apr 28 [Read Order]

LiveLaw News Network
17 April 2017 9:53 AM GMT
SC Orders Auction Of Sahara’s Ambey Valley: Summons To Roy For Apr 28 [Read Order]
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Going strictly by its tough words on March 21, the Supreme Court in a stinging order today directed auction of Ambay valley property of Subrata Roy’s Sahara Group as it failed to deposit  the amount which was to deposited by today for repaying investors.

A special bench headed by Justice Dipak Misra ordered appointment of an official liquidator and asked him to commence auction process for Ambay valley. The Sahara group has valued the property at Rs 34,000 crore.

Asking Roy to personally present in court on April 28 when official liquidators is likely to inform it about value of Aamby Valley,  the bench said “we would like to tell that it would be better if he does not resile from undertakings given to court earlier on repayment of Rs 25000 crore to investors through SEBI. Sahara has so far paid around Rs 11,000 cr.

“Remember we have granted you parole to attend rituals after your mother's death. We also have been extending the bail period from time to time. But we are sorry to say that we find that the indulgence shown by court has been misused”, the bench told Roy’s lawyer adding if he resiled from earlier undertakings, only peril awaited him.

On March 21 the Supreme Court  issued a fresh and last warning to the Sahara Group that it would auction its prime property worth Rs 39,000 crore at Aamby Valley in Pune if Rs 5092.6 crore is not paid by the company by April 17 as promised.

It was on February 6 that the Supreme Court first ordered attachment of the company’s prime asset

A bench headed by Justice Dipak Misra had also directed the international real estate firm, which had shown willingness to buy Sahara's stake in New York- based Plaza Hotel for USD 550 million, to deposit Rs 750 crore in the SEBI-Sahara refund account instead of the apex court registry to show its bonafide.

“By virtue of the order passed today, the earlier order stands modified to the extent that the amount of Rs.750 crores (Rupees seven hundred fifty crores only) shall be deposited in the SEBI Sahara Refund Account, but the time fixed in the previous order i.e. 17th April, 2017, remains undisturbed”, the order had said.

“We will auction your (Sahara) Aamby Valley project if the money is not deposited within the stipulated time period as promised, the bench had told Sahara group.

Read the Order here.

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