This proposed sale, which includes high-value assets like the vast Aamby Valley City in Maharashtra and Sahara Shaher in Lucknow, aims to generate over ₹12,000 crore to settle Sahara’s massive outstanding liabilities to its investors.
Key Directives from the Supreme Court
A bench comprising Chief Justice B.R. Gavai, Justice Surya Kant, and Justice M.M. Sundresh issued several crucial directions to ensure transparency and protect all stakeholder interests:
Government Impleadment: The Court directed Sahara to formally include the Union Ministries of Finance and Corporate Affairs in its application. This was requested by Solicitor General Tushar Mehta, who emphasized that the Central Government must review the proposal’s viability.
Amicus Curiae Oversight: Senior Advocate Shekhar Naphade, the court-appointed amicus curiae (friend of the court), was directed to gather all claims on the 88 properties. His task is to categorize which assets are undisputed, which are under dispute, and where ownership rights remain unclear.
Workers’ Claims: Sahara was specifically ordered to examine and address the claims of its workers concerning these properties, highlighting the Court’s focus on comprehensive liability settlement.
In its application, the Sahara Group argued that the sale is necessary following the death of its founder, Subrata Roy. The company stated that without its principal decision-maker, its capacity to manage and dispose of the vast portfolio of attached assets has weakened.
Furthermore, the application noted that SEBI’s own attempts to liquidate these properties were unsuccessful, and many assets remain tied up due to various restraint orders. The proposed block sale to Adani Properties, for which a term sheet has been executed, offers a comprehensive way to unlock value and deposit the proceeds directly into the SEBI-Sahara Refund Account.
The Court observed the inherent conflicts in the case, particularly between the buyer, the seller, and various claimants:
Adani’s Stance: Senior Advocate Mukul Rohatgi, representing Adani Properties, informed the Court that his client is prepared to acquire all 88 properties in a single transaction, even those with existing claims, to expedite the resolution process.
SEBI’s Condition: Senior Advocate Arvind Datar, appearing for SEBI, stipulated that the sale must only proceed if the price realized is no less than 90% of the market value. SEBI also noted that the Sahara Group still owes approximately ₹9,000 crore towards the overall refund account.
The Debt: The original 2012 Supreme Court order required Sahara to deposit over ₹24,000 crore for repayment to investors. While Sahara claims to have deposited a major portion, a significant shortfall remains, which this proposed sale seeks to cover.
This latest hearing comes on the heels of the Supreme Court’s September 12 order, which permitted the disbursal of an additional ₹5,000 crore from the SEBI-Sahara account to cooperative society depositors, confirming the urgency behind the ongoing refund exercise.
The Court has listed the matter for its next consideration on November 17, when responses from the Union government, SEBI, and the Amicus Curiae on the feasibility of the massive asset sale are expected.