In a major development for the millions of investors who have been waiting to recover their funds from Sahara India, the Supreme Court of India has issued a stern directive to the Sahara Group. The court has ordered the group to sell its properties and repay the investors. The court emphasized that Sahara is free to sell its properties to deposit ₹10,000 crore into the SEBI-Sahara Refund Account, stating that there are no restrictions on Sahara from selling its assets to fulfill this obligation.
The court further clarified that no entity can stop Sahara from selling its properties to repay the investors. This follows the Supreme Court’s earlier directive from August 1, 2012, which instructed Sahara companies – SIRECL (Sahara India Real Estate Corporation Limited) and SHICL (Sahara Housing Investment Corporation Limited) – to return the money collected from investors with 15% annual interest to SEBI.
Supreme Court’s Strong Words
A bench comprising Justice Sanjiv Khanna, Justice MM Sundresh, and Justice Bela M Trivedi expressed disappointment with the Sahara Group’s inability to comply with the court’s directive to deposit the required funds. Senior advocate Kapil Sibal, representing Sahara, argued that the group wasn’t given sufficient opportunity to sell its properties. In response, the court noted that there are no restrictions on Sahara selling its assets to deposit the remaining ₹10,000 crore, part of the ₹25,000 crore that was mandated by the court.
The court also instructed that the properties should not be sold below the circle rate (the minimum rate set by the government for property transactions). In case of selling below the circle rate, Sahara would need to seek prior permission from the court.
Sahara Group’s Massive Property Holdings
The Sahara Group is known to have significant real estate holdings across India and abroad. These properties have been one of the key assets of the group, but their exact valuation has remained a topic of discussion.
Here are some insights into Sahara’s major property holdings:
- Aamby Valley City (Lonavala, Maharashtra):
- One of Sahara’s flagship properties, Aamby Valley is a luxury township spread across 10,600 acres near Mumbai and Pune.
- It includes residential villas, golf courses, an airport, and entertainment complexes.
- Estimated value: ₹40,000 crore – ₹50,000 crore (although selling prices may vary due to market conditions).
- Sahara Star Hotel (Mumbai):
- A prominent luxury hotel located near the Mumbai airport.
- The value of this high-end property is estimated to be around ₹1,000 crore.
- Sahara’s Overseas Properties:
- Sahara owns several overseas properties, including high-end hotels such as:
- The Plaza Hotel in New York (Sahara’s stake sold in 2018)
- Grosvenor House in London
- These properties are valued at several thousand crore rupees, with the Plaza Hotel alone estimated at around ₹4,000 crore during its stake sale.
- Sahara owns several overseas properties, including high-end hotels such as:
- Sahara’s Real Estate in Major Indian Cities:
- The group owns multiple plots of land and commercial properties in cities like Delhi, Kolkata, Lucknow, and Hyderabad.
- These properties hold significant value but would need proper market evaluation to estimate current market prices.
Possible Impact of Property Sales
If Sahara begins liquidating these assets as per the Supreme Court’s order, it could have far-reaching consequences:
- Relief for Investors: Selling these high-value properties could finally bring relief to the millions of investors who have been waiting for their refunds for years.
- Property Market Impact: If these prime properties are sold at competitive rates, they could influence the real estate market, especially in luxury segments.
Summary of Supreme Court Directive
| Key Directive | Details |
|---|---|
| Supreme Court Order | Sell properties to repay ₹10,000 crore to SEBI-Sahara Refund Account |
| Properties Sale Conditions | Cannot sell below circle rate without prior court approval |
| Amount to be Repaid | ₹10,000 crore (part of the ₹25,000 crore total) |
| Property Holdings | Aamby Valley, Sahara Star Hotel, Overseas Hotels, Real Estate in Major Cities |
| Estimated Value of Aamby Valley | ₹40,000 crore – ₹50,000 crore |
The court’s order to sell properties is likely to accelerate the process of repaying the investors, though the exact timeline will depend on how quickly the group can find buyers for these high-value assets.
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