Supreme Court Directs Sahara and SEBI to Explore Versova Plot Development
The Supreme Court of India has taken significant steps to address the complex issue surrounding Sahara India Commercial Corporation’s (SICCL) 106-acre plot in Versova, Mumbai. The apex court has directed the Union Environment Ministry and the Maharashtra government to clarify whether the plot is fully or partially a mangrove forest, as this classification could significantly impact its eligibility for development.
Background of the Case
The Sahara Group has been embroiled in a long-standing legal battle over its financial obligations, particularly concerning the repayment of funds to investors. In August 2012, the Supreme Court ordered Sahara India Real Estate Corporation and Sahara Housing Investment Corporation to refund over Rs 24,029 crore collected from 33 million bond investors, with an interest of 15% from March 2008. As of March 31, 2023, Sahara has paid Rs 15,646.68 crore, leaving a remaining liability of Rs 10,000 crore.
Recent Developments
On February 12, 2025, the Supreme Court directed Sahara and the Securities and Exchange Board of India (SEBI) to hold a meeting with two Mumbai-based property consultants to explore the terms and conditions for monetizing the Versova plot to maximize its value. The court has given the Ministry of Environment and Forests and the Maharashtra government chief secretary a fortnight to provide details on the environmental status of the plot.
Concerns Raised
Amicus Shekhar Naphade informed the court that the Versova plot, which includes mangroves, falls under the stringent coastal regulation zone where no development is permitted. This revelation has raised concerns about the legality and feasibility of any development plans for the plot.
Bidding Proposals
Sahara’s senior counsel Kapil Sibal informed the court that the company had received an offer of Rs 8,000 crore for a joint venture (JV) development from a third party. However, the court noted that other bidders were willing to offer substantial payments but preferred outright sale rather than a JV. The Supreme Court has asked these bidders to file their submissions to determine the best method for utilizing the Versova land to realize its maximum value.
Previous Orders and Actions
In September 2024, the Supreme Court allowed Sahara to form a JV to develop the Versova property to raise Rs 10,000 crore, which would be deposited in the SEBI-Sahara refund account to repay investors. The court also permitted Sahara to pursue JVs for other properties, including the Aamby Valley project.
Conclusion
The Supreme Court’s directive underscores its commitment to ensuring that Sahara fulfills its financial obligations to investors while also addressing environmental concerns. The upcoming meeting between Sahara, SEBI, and real estate consultants will be crucial in determining the best course of action for the Versova plot. The court has scheduled the next hearing for April 2, 2025.