Winning Bizness Desk
Mumbai.Sahara India Commercial Corporation Limited (SICCL) has approached the Supreme Court for permission to sell 88 properties, including Ambi Valley in Maharashtra and Sahara City in Lucknow, to Adani Group. The court may hear the request on October 14. The deal was signed on September 6, and Sahara has stated that the sale will help fetch good value for its properties while assisting in repaying outstanding dues as directed by the court.
Previous asset sales raised significant funds
Earlier, Sahara had sold several movable and immovable assets, raising around 16,000 crore rupees. These funds were deposited in the SEBI Sahara Refund Account and have been used to repay investors and other stakeholders. The current property sale is part of continued efforts to settle remaining liabilities.
Reasons behind selling properties
Sahara is selling properties primarily to return money to investors. The group owes investors 24,030 crore rupees, and proceeds from property sales will be deposited in the SEBI Sahara Refund Account. The sale also ensures compliance with Supreme Court orders and can help end contempt proceedings against the company. Additionally, selling these assets is aimed at reducing financial pressure and addressing obligations more efficiently.
Challenges in the market and legal issues
The property sales faced delays due to poor market conditions, ongoing lawsuits, and actions by investigative agencies. The deal with Adani Properties allows Sahara to get a better price quickly, providing a practical solution under challenging circumstances. The transaction is expected to streamline the repayment process and help settle investor claims faster.
Impact of Subrata Roy’s death on decisions
Following the death of Sahara Group’s founder Subrata Roy in November 2023, the group lacked a final decision-maker. The family decided to sell properties quickly at the best possible prices in investors’ interest. This step is also aimed at completing essential transactions and managing the group’s remaining obligations efficiently.
Court orders for cooperative society investors
On September 12, the Supreme Court directed Sahara Group to return 5,000 crore rupees from the total 24,030 crore deposited with SEBI to the group’s cooperative society investors. The court had previously issued a similar order on March 29, 2023. This highlights the ongoing legal and financial obligations Sahara continues to address through asset sales.
Background of the SEBI case and bond collection
The major legal issue against Sahara India Group involved its two companies, SIRECL and SHICL, which raised over 24,000 crore rupees from small investors by selling optionally fully convertible debentures (OFCDs) without SEBI approval. Sahara classified it as private placement, violating rules. SEBI directed Sahara to stop bond sales and return investors’ money. The Supreme Court in 2012 ordered repayment with 15% interest within three months. Sahara could not meet this initially, leading to installment payments. The group claims it has already returned 90% of investors’ money.
Pointers in a nutshell
Sahara Group plans to sell 88 properties to Adani Group.
Supreme Court approval is sought for the deal, hearing on October 14.
Earlier property sales raised 16,000 crore rupees for investor repayment.
Proceeds will go into SEBI Sahara Refund Account to clear dues.
Market challenges and legal issues delayed property sales.
Subrata Roy’s death led to faster decisions by the family.
Sahara’s SEBI case involves OFCD bonds, repayment obligations with interest.
