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Informist, Wednesday, Jan. 8, 2025

 

--SC to SEBI: Examine Oberoi Realty, Valor Estate proposals in Sahara case 

--SC:Oberoi Realty, Valor Estate must deposit INR 10 bln each in Sahara case 

--CONTEXT: SC hearing contempt case against Sahara cos for not paying dues 

 

NEW DELHI – The Supreme Court on Wednesday asked the Securities and Exchange Board of India to examine the proposals given by Oberoi Realty Ltd. and Valor Estate Ltd. to enter into a joint venture or development agreement with the Sahara group of companies for the 106-acre plot in Versova in Mumbai. The agreement is for the development of the 106-acre plot and payment of the remaining dues of the Sahara group of companies of almost 100 bln rupees. 

 

The bench led by Chief Justice Sanjiv Khanna asked Oberoi Realty and Valor Estate to deposit a demand draft of INR 10 billion each in the court. The amount will not be encashed until it takes a final decision in the case, the court said.

 

The apex court will hear the case after three weeks to decide which of the developers will be given the go-ahead. 

 

Appearing for Oberoi Realty, Advocate Abhishek Manu Singhvi said that the company has already given INR 10 billion through a demand draft, another INR 500 million will be paid within 15 days of getting clearance for the land and INR 500 million will be paid after the second clearance is given. Singhvi said that the developer has prepared a cash flow statement and the development of the plot can be completed in 13 years.

 

The counsel appearing for Valor Estate also shared a proposal for the development of the Versova land. Singhvi, however, contested Valor Estate's proposal and said the company, which had just come out of insolvency proceedings, was involved in the 2G spectrum case as DB Realty Ltd. 

 

The court was hearing a 2013 contempt case by SEBI against the Sahara Group for not complying with an apex court's 2012 order. 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. 

 

In September, the top court allowed Sahara group to enter into a joint venture or development agreement for its Versova plot for payment of its remaining dues as ordered by the court in 2012. The top court had said that the joint venture agreement will be implemented only after its approval.

 

On Wednesday, shares of Oberoi Realty ended 0.6% higher at INR 2,282.40 on the National Stock Exchange, while those of Valor Estate ended 0.9% lower at INR 167.83. End

 

Reported by Surya Tripathi

Edited by Saji George Titus

 

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