More Stories

Informist, Wednesday, Feb. 12, 2025

 

--SC seeks Centre, Maharashtra reply if Sahara Versova plot mangrove or not 

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

--SC: Sahara, stakeholders to meet on monetising Versova plot for best price 

 

NEW DELHI – The Supreme Court Wednesday sought responses from the Union environment ministry and the Maharashtra government on whether Sahara India Commercial Corp. Ltd.'s 106-acre plot in Versova in Mumbai lies in a mangrove area. The court directed a meeting of officers of Sahara India, Securities and Exchange Board of India, and property consultants to explore terms and conditions on which the plot could be monetized for maximum value.

 

Further, the court asked officers of Sahara India, SEBI, and real estate consultants to examine whether a joint venture development agreement would be better for the plot or the land should be sold to get maximum value. The court gave the direction after noting that Sahara India had got an offer of INR 80 billion for a joint venture from a third party regarding the 106-acre plot, while other bidders were seeking sale of the land.

 

Monetization or sale of the land is needed to pay off the remaining dues of the Sahara Group of companies. The dues amount to almost INR 100 billion. According to media reports, the 106-acre plot, with mangroves and a creek, falls in the stringent Coastal Regulation Zone I, where no development is permitted.

 

Earlier, Oberoi Realty Ltd. and Valor Estate Ltd. had showed interest in the Versova land, and the apex court had asked SEBI to examine their proposals. The bench headed by Chief Justice of India Sanjiv Khanna had 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 the case is decided, the court had said.

 

On Wednesday, the top court noted that there were various bidders for the land. The chief justice said that once the matter was in court, it was for the court to ensure that the maximum price is obtained for the land. Accordingly, the court asked the bidders to make written submissions that would help to ascertain the proper use of the plot with maximum realisation. The court said the money deposited by Oberoi Realty would be returned to the company with interest.

 

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 SEBI and the 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 had allowed the Sahara Group to enter into a joint venture or development agreement for its Versova plot to pay the remaining dues ordered by the court in 2012. The top court had said the joint venture agreement could be implemented only after its approval.

 

On Wednesday, shares of Oberoi Realty ended 3.8% lower at INR 1,640.25 on the National Stock Exchange, and those of Valor Estate ended 3.6% lower at INR 137.84.  End

 

Reported by Surya Tripathi

Edited by Rajeev Pai

 

For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.

 

Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd by NSE Data & Analytics Ltd, a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt Ltd.

 

Informist Media Tel +91 (11) 4220-1000

Send comments to feedback@informistmedia.com

 

© Informist Media Pvt. Ltd. 2025. All rights reserved.