Supreme Court.Image credit source: Getty Images
The Supreme Court on Thursday directed Sahara Group to deposit Rs 1,000 crore in a separate escrow account (third-party account) within 15 days to set up a joint venture (JV) for development of its land in Mumbai’s Versova. Rs 10,000 crore can be raised. As per the 2012 court order, an amount of Rs 10,000 crore will be deposited in the SEBI-Sahara refund account to return the money to investors.
Otherwise the land will be sold.
A bench comprising Justice Sanjiv Khanna, Justice MM Sundaresh and Justice Bela M Trivedi said that if the joint venture fails to appear before the court within 15 days, it will sell 1.21 crore sq ft of land at Versova as it is. The court said that we give 15 days to SIRECL and SHICL (both Sahara Group companies) to comply with the declaration given before the court today. If the Joint Venture/Development Agreement is not filed within 15 days, this Court will be at liberty to sell the Versova land as it is.
One billion rupees will have to be deposited
According to the order, the amount of Rs 1,000 crore to be deposited by the third party will be kept in an escrow account. If this Court does not grant approval/permission (for the Joint Venture Agreement), the amount will be returned to the said third party. It listed the case for further hearing after one month. The Supreme Court has permitted Sahara group companies Sahara India Real Estate Corporation Limited (SIRECL) and Sahara Housing Investment Corporation Limited (SHICL) to enter into a joint venture agreement for development of properties, including the Aamby Valley project in Mumbai, in 2012. Directions were given to deposit approximately Rs 25,000 crore.
