SC gives 1 month to Sahara group to enter into JV for Versova land
This story was originally published at 17:58 IST on 5 September 2024
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NEW DELHI – The Supreme Court today allowed the Sahara group to enter into a joint venture or land development agreement for its 106 acres plot in Versova, Mumbai, for payment of its remaining dues of almost 100 bln rupees, as ordered by the apex court in 2012. The top court said that the joint venture agreement will be implemented only after its approval.
The apex court granted a month's time to the Sahara group to enter into a joint venture agreement. The Bench led by Justice Sanjiv Khanna said Sahara group has to deposit 10 bln rupees with the apex court, which will be kept in an escrow account. In case the joint venture agreement is not there in one month, it will be open for the court to undertake the sale of Versova land on as is where is basis, said Justice Khanna. If the court does not approve the joint venture agreement, 10 bln rupees will be returned to the group.
"We allow the Sahara group of companies to enter into a joint venture or development agreement related to other properties. Any property sold or transferred, the said consideration must be deposited in SEBI-Sahara refund account," said the court. Further, the apex court also rejected Sahara group's attempt to seek reconsideration of the court's 2012 judgement asking them to pay 240 bln rupees to its bondholders.
A refund account, operated by the Securities and Exchange Board of India and Sahara Group, was formed after the court in 2012 directed Sahara India Real Estate Corp Ltd and Sahara Housing India Corp Ltd to refund almost 240 bln rupees to those who had invested in their optionally fully convertible debentures between 2008 and 2011.
On Wednesday, the apex court had said that it has to find some practical solution to refund the investors' money as the issue was pending for over a decade. "Sahara Group has said that it will submit some scheme for depositing around Rs 10,000 crore (100 bln rupees). This matter cannot go on and on. It has been more than 10 years since the court directed for a deposit of Rs 25,000 crore (250 bln rupees). We have to find some practical solution to make a headway as the company has only deposited around Rs 15,000 crore (150 bln rupees) till now," said the apex court. End
Reported by Surya Tripathi
Edited by Deepshikha Bhardwaj
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