SEBI-Sahara Case: Supreme Court Calls For Review Of Versova Property Development Plans

The Supreme Court on Wednesday directed the Securities and Exchange Board of India to examine land development proposals submitted for the development of Sahara Group's Versova property.

Two developers—Oberoi Realty Ltd. and Valor Estate Ltd.—have submitted the proposals.

The top court will hear the case again after three weeks, to take a decision regarding which developer should be given a go-ahead.

In the meantime, the court has directed both the developers to deposit Rs 1,000 crore via a demand draft. The court stated that the amount will not be encashed until it takes a final decision in the matter.

In September last year, Sahara was granted 30 days to negotiate a joint venture or land development agreement for their Versova property, in order to make up for the shortfall of Rs 10,000 crore in the SEBI-Sahara Fund.

In an August 2012 verdict, the top court had ordered two Sahara companies—Sahara India Real Estate Corp. and Sahara Housing Investment Corp.—to refund Rs 24,000 crore, along with 15% interest, to more than 2 crore small investors who had invested in their optionally fully convertible debentures between 2008 and 2011.

This order came after the regulator ruled that the funds were raised by the two firms in violation of its rules and regulations.

Sahara was eventually asked to deposit an estimated Rs 25,000 crore with SEBI for refunds to investors, though the group has been maintaining that it had already refunded more than 95% investors directly.

In 2020, SEBI filed a petition before the top court, pegging the amount that Sahara Group's two companies and Subrata Roy had to pay the regulator at Rs 62,000 crore.

Roy passed away in November 2024. At the time, SEBI chief Madhabi Puri Buch had said that the case would continue even after Roy's death, stating that the matter was about an entity's conduct and adding that it would continue regardless of whether an individual is there or not.

Notably, of the Rs 25,000 crore, Sahara has paid only Rs 15,000 crore as of now.