Sahara-Adani property deal faces delay as govt seeks time in Supreme Court
The Union government has sought more time to respond to a plea by the financially strapped Sahara India Commercial Corporation Ltd (SICCL), which has sought Supreme Court approval for the sale of 88 properties, including Aamby Valley in Maharashtra and Sahara Shaher in Lucknow, to Adani Properties Pvt. Ltd. ₹He will make a deal of 12,000 crore and clear his debts.
Solicitor General Tushar Mehta, appearing on behalf of the Centre, made the request on Monday before a bench comprising Chief Justice of India BR Gavai and justices Surya Kant and MM Sundresh. The court accepted the request and postponed the case for six weeks. Mehta also asked for the finance ministry and the cooperation ministry to be added as parties to the hearings, pointing to the involvement of many cooperative societies that have invested in or are financially favored in Sahara group entities.
The RS bench also postponed the hearing of applications seeking the release of pending salaries of Sahara employees. Senior advocate Shekhar Naphade informed the court that Sahara continues to receive claims regarding properties that it has not disclosed. He suggested that the company be directed to publish a comprehensive list of its assets on its website. However, the court did not make any decision on this issue.
In the earlier hearing on October 14, the top court had asked the Center and market regulator Securities and Exchange Board of India (Sebi) to respond to Sahara’s applications. It also directed all claimants to present their claims before the amici, who were asked to prepare a table classifying the properties as disputed, undisputed or uncertain in terms of ownership. Sahara was told to review the claims submitted by its employees; The Centre, Sebi and friends were instructed to submit their responses.
In its plea, Sahara said Sebi has been unable to sell most of its attached properties despite various attempts, and its ability to manage or dispose of assets has weakened since the death of the group’s founder, Subrata Roy, in 2023. The group, which has foreclosure orders on many properties, asked the court for permission to continue the sales so that the funds can be used to pay off its obligations. Sahara has already signed a term sheet with Adani Properties for the proposed transaction.
During the hearing on October 14, Sahara told the High Court that Adani Properties had agreed to pay approximately Rs. ₹12,000 crore for 88 assets under the term sheet signed between the parties.
During this hearing, Adani Properties’ senior lawyer Mukul Rohatgi said that to avoid protracted litigation, the company was willing to acquire all 88 properties in one go, even if some assets were subject to disputes.
Its list of assets includes Aamby Valley City, Hotel Sahara Star in Mumbai, Sahara Shaher and Sahara Ganges in Lucknow, along with many large land parcels in the states. Sahara said all sale proceeds will be deposited in the Sebi-Sahara Repayment Account, as directed by the Supreme Court, for repayment of optionally fully convertible debentures (OFCDs) (hybrid financial instruments that combine features of both equity and debt and give investors the option to convert them into shares or hold them till maturity) to investors.
a long-standing dispute
The case is part of the ongoing Sahra-Sebi case, which began more than a decade ago. In 2012, the Supreme Court ordered refunds to Sahara organizations. ₹24,000 crore was collected illegally through OFCDs at 15% interest per annum. Sahara says it’s piling up around ₹16,000 crore so far, Sebi maintains it is more than 16,000 crore ₹9,000 crore is still outstanding.
The court allowed his release in September ₹5,000 crore from the repayment account to depositors, including investors in Sahara Group cooperative societies.
Over the years, the Supreme Court has allowed Sahara to sell assets to raise funds for repayments, provided the sale price is not less than 90% of the market value of the asset in question.
Sahara’s legal troubles date back to 2010, when Sebi banned Subrata Roy and his companies from raising funds through OFCDs, citing regulatory violations. Sahara initially sought interim relief from the Allahabad High Court, but the Delhi High Court later issued an arrest warrant against Roy citing investor complaints. The High Court eventually ordered Sahara to disclose the details of its OFCD plans and repay investors with interest.
Roy was arrested in 2014 for not following the rules and was sent to Tihar Jail in Delhi. He was released on parole in 2016, but remained under scrutiny until his death in November 2023 after a protracted illness.
