SC bans sale of Sahara assets, bars Roy from going abroad
NEW DELHI: In a serious jolt to Sahara group, the Supreme Court
on Thursday put an interim ban on the business house from disposing off
any of its properties, including the group's housing projects across
the country, and restrained its boss Subroto Roy and other top officials
from going abroad.
"We are prima facie satisfied that our order dated October 28, 2013 has not been complied with. The Sahara group companies shall not part with their properties," ordered a bench of Justices K S Radhakrishnan and J S Khehar.
On October 28, the court had asked Sahara to submit original title deeds of its assets worth Rs 20,000 crore and warned that failure to do so would result in orders restraining Roy and others from undertaking foreign travel.
The court had asked for the title deeds as it had found that two Sahara companies, which were on August 31 last year directed to refund Rs 24,000 crore they had irregularly collected from investors, had used every possible trick to avoid compliance. The Sahara firms had paid up Rs 5,120 crore and said the total outstanding after that stood at only Rs 2,000-odd crore, the rest having already been paid back to the investors through field offices.
However, market regulator Sebi contested the claim and said the Sahara firms were not furnishing receipts for refunds they claimed to have made through their field offices. As the matter dragged on, the court issued notices to the two Sahara companies and Roy on contempt petition filed by the market regulator.
During the hearing, senior advocate C A Sundaram told the bench that Sahara had given title deeds of two plots in Mumbai, one of which was a 106-acre parcel at Versova which was independently evaluated to be worth more than Rs 19,000 crore.
But Sebi pointed out that the land value was calculated on the basis of its potential worth in the year 2020 when Sahara would build villas, golf courses and houses on the land. "The government record shows it is valued at Rs 108 crore. This was mainly because it had been declared a no-development zone," said senior advocate Arvind Datar for the regulator.
Though Sundaram tried to explain that the government had allowed development on the land, the bench said it was not going to be taken in by the potential worth of a plot at a future date.
When it passed the order restraining the entire group from selling any of its properties, Sundaram said, "I did not understand. Is it because there is some problem with the title deed submitted by the Saharas?"
The bench said, "It is important for the Saharas to understand that till they comply with the (October 28) orders, they will not be heard. First comply with the orders. We will hear the contempt petition (by Sebi) later. We are restraining the entire group from alienating any immoveable property."
The court posted the matter for further hearing on December 11 and said Sahara could seek vacation of the interim order once they complied with the October 28 order in letter and spirit.
"We are prima facie satisfied that our order dated October 28, 2013 has not been complied with. The Sahara group companies shall not part with their properties," ordered a bench of Justices K S Radhakrishnan and J S Khehar.
On October 28, the court had asked Sahara to submit original title deeds of its assets worth Rs 20,000 crore and warned that failure to do so would result in orders restraining Roy and others from undertaking foreign travel.
The court had asked for the title deeds as it had found that two Sahara companies, which were on August 31 last year directed to refund Rs 24,000 crore they had irregularly collected from investors, had used every possible trick to avoid compliance. The Sahara firms had paid up Rs 5,120 crore and said the total outstanding after that stood at only Rs 2,000-odd crore, the rest having already been paid back to the investors through field offices.
However, market regulator Sebi contested the claim and said the Sahara firms were not furnishing receipts for refunds they claimed to have made through their field offices. As the matter dragged on, the court issued notices to the two Sahara companies and Roy on contempt petition filed by the market regulator.
During the hearing, senior advocate C A Sundaram told the bench that Sahara had given title deeds of two plots in Mumbai, one of which was a 106-acre parcel at Versova which was independently evaluated to be worth more than Rs 19,000 crore.
But Sebi pointed out that the land value was calculated on the basis of its potential worth in the year 2020 when Sahara would build villas, golf courses and houses on the land. "The government record shows it is valued at Rs 108 crore. This was mainly because it had been declared a no-development zone," said senior advocate Arvind Datar for the regulator.
Though Sundaram tried to explain that the government had allowed development on the land, the bench said it was not going to be taken in by the potential worth of a plot at a future date.
When it passed the order restraining the entire group from selling any of its properties, Sundaram said, "I did not understand. Is it because there is some problem with the title deed submitted by the Saharas?"
The bench said, "It is important for the Saharas to understand that till they comply with the (October 28) orders, they will not be heard. First comply with the orders. We will hear the contempt petition (by Sebi) later. We are restraining the entire group from alienating any immoveable property."
The court posted the matter for further hearing on December 11 and said Sahara could seek vacation of the interim order once they complied with the October 28 order in letter and spirit.
rahul singh 1
pgdm 1 st year
No comments:
Post a Comment