**Supreme Court Seeks Maharashtra’s Response on Sahara Group’s Versova Land Status**
New Delhi: On Wednesday, the Supreme Court requested the Maharashtra government to provide information regarding the environmental status of the Sahara Group’s 106-acre land in Versova, Mumbai, which is currently under financial distress. The designation of this land as a mangrove forest could affect its eligibility for sale through a bidding process.
A bench led by Chief Justice Sanjiv Khanna, along with justices M.M. Sundresh and Bela M. Trivedi, instructed the chief secretary of Maharashtra to submit an affidavit within 15 days. This directive comes in light of concerns raised by the Securities and Exchange Board of India (Sebi), which indicated that land records classify the Versova property under mangrove forest regulations. Sebi is aiming to recover ₹10,000 crore in dues from Sahara by selling the land.
The court also directed Sahara India Commercial Corp., the landowner, to consult with real estate experts and Sebi officials to explore ways to enhance the land’s commercial value. The next hearing is set for April 2.
In January, the Supreme Court had tasked Sebi with reviewing proposals from Oberoi Realty and Valor Realty (formerly DB Realty) for the development of the Versova land. Both bidders were required to deposit ₹1,000 crore each with the court. During Wednesday’s proceedings, Oberoi Realty confirmed its deposit, while Valor Realty submitted a demand draft.
However, the court opted not to review the bids at this time and ordered the return of Oberoi Realty’s ₹1,000 crore deposit for the moment. Senior advocate Kapil Sibal, representing Sahara, informed the court of an ₹8,000 crore joint venture offer from an undisclosed third party.
In September 2023, the Supreme Court permitted Sahara to establish a joint venture for the development of the Versova land, stipulating that the ₹10,000 crore proceeds be deposited in Sebi’s Sahara refund account for investor repayments. The court also allowed Sahara to seek joint ventures for other properties, including Aamby Valley, but emphasized that any proceeds must be deposited in the Sebi-Sahara refund account, with any sale below 10% of the circle rate requiring court approval.
Sahara Group’s legal challenges date back to 2010 when Sebi prohibited its chairman, Subrata Roy, and his companies from raising funds through optionally fully convertible debentures (OFCDs) due to regulatory violations. In 2012, the Supreme Court ordered Sahara to refund ₹25,000 crore to investors with a 15% annual interest rate. As of September 2020, Sahara had deposited ₹15,455.70 crore, which Sebi invested in fixed deposits, resulting in a refund account balance of ₹22,589.01 crore with interest. However, Sebi claims that Sahara still owes ₹10,325.62 crore in principal, alleging significant violations of court orders. In 2014, the Supreme Court mandated Sahara to disclose details of its OFCD schemes.
