New Delhi, Feb 12 (PTI) The Supreme Court on Wednesday directed Sahara India Commercial Corporation Ltd (SICCL) and SEBI to hold a meeting along with two Mumbai-based property consultants to explore the terms and conditions on which Sahara Group's Versova land could be sold to get maximum value to return investors' money.

A bench of Chief Justice Sanjiv Khanna and Justices M M Sundresh and Bela M Trivedi issued notices to the Ministry of Environment and Forests and Maharashtra's chief secretary and sought their responses on the status of Versova plot and clarify whether it was a forest land.

"After the last date of hearing, we have had several bidders' proposals for the land at Versova. Mr Shekhar Naphade, who is amicus curiae, has submitted a note before us stating that the Versova plot is mangrove forest area either fully or partially. In these circumstances we deem it appropriate to issue notice to the Ministry of Forests and (Maharashtra) chief secretary who shall inform this court about status of the Versova plot," it said.

The bench went on, "We also deem it appropriate to direct that there would be a meeting of two officers of SICCL, two officers of SEBI along with two property consultants based in Mumbai nominated by SEBI will have a joint meeting to explore the terms and conditions on which the Versova land can be sold to get maximum value." The bench directed SICCL to provide full details and submit a copy of purchase deed or sale deed or documents issued by the revenue department with regard to the plot.

Senior advocate Kapil Sibal, appearing for SICCL, submitted Sahara got an offer of Rs 8,000 crore in a joint venture agreement with a third party for the plot.

The court noted there were other bidders, ready and willing to offer substantial payments but may not prefer a joint venture.

"For the time being we are not examining this as this is a matter related to commerce and business and it would be first examined by officers of SEBI along with real estate consultants," the bench said and posted the hearing on April 2.

On September 5, the top court directed Sahara Group to deposit Rs 1,000 crore in a separate escrow account within 15 days and allowed it to enter into a joint venture for developing its land at Versova in Mumbai to realise Rs 10,000 crore.

The amount of Rs 10,000 crore has to be deposited in SEBI-Sahara refund account for returning the investors' money, in compliance with the apex court's 2012 order.

The apex court had allowed Sahara India Real Estate Corporation Ltd (SIRECL) and Sahara Housing Investment Corporation Ltd (SHICL) -- directed to deposit around Rs 25,000 crore in 2012 -- to enter into a joint venture agreement for developing other properties, including the Aamby Valley project in Mumbai.

SEBI had said as per its record the principal liability on Sahara Group was Rs 25,781 crore, while the company claimed the principal amount asked by the court to deposit was around Rs 24,029.73 crore.

In a series of directions on August 31, 2012, the top court directed SIRECL and SHICL to refund the amount collected from individual investors or group of investors, with interest of 15 per cent per annum to SEBI from the date of receipt of the subscription amount till the date of repayment within three months.

In November 2023, Sahara Group chief Subrata Roy, who was ordered to be taken into custody by the court in the matter, died at a private hospital in Mumbai. PTI PKS AMK

Sale of encumbered land: joint valuation and documentation review ordered to maximise proceeds for investor refunds. A multi party meeting was directed comprising two officers each from the company and the regulator plus two SEBI nominated property consultants to explore terms and conditions for sale of the Versova plot to maximise realisations for investor refunds; the company must furnish full purchase/sale deeds and revenue documents. The court issued notices to the Ministry and state chief secretary to confirm whether the plot is, wholly or partially, mangrove or forest land, since environmental status may affect disposition and marketability.