SECURITIES AND EXCH. BOARD OF INDIA Vs. SAHARA INDIA REAL ESTATE CORPORATION LTD

JUDGEMENT

(1.) By our order dated 4th June, 2014 we had, while declining the prayer made by the contemnors for modification of the terms on which they were granted interim bail, partially modified order dated 21st November, 2013 passed by this Court and that passed by SEBI on 13th February, 2013 so as to enable Sahara India Real Estate Corporation Limited (SIRECL) and Sahara Housing Investment Corporation Limited (SHICL) (hereinafter referred to as 'Saharas' for short) to deposit with SEBI the maturity value/sale consideration of FDs, bonds and securities held by the Saharas. We had also, by the same order, permitted Saharas to sell nine different properties situate in nine different cities in the country and to deposit the sale proceeds thereof with SEBI, to the extent the same was necessary to make a total deposit of Rs.5,000/- crores required in terms of the bail order. We had also permitted Saharas to charge its immovable property situate in Aamby Valley (Pune) for obtaining and furnishing to this Court a bank guarantee for an amount of Rs.5,000/- crores in terms of the bail order dated 4th June, 2014. As regards Sahara's prayer for permission to sell three hotel properties situate outside the country, we had left the question open to be determined after Saharas furnished the requisite documents/information in terms of our order dated 29th May, 2014 evidencing the approval of Bank of China to the proposed transfer of the stakes held by the Saharas in the said three properties. We were informed that Bank of China had a charge over the three properties and that it had agreed in principle to the sale of the stakes held by Saharas subject to the repayment of the outstanding loan amount for which the said properties were charged. We had also noticed the valuation reports in regard to the three properties mentioned above and a contention urged by Saharas that the same had been prepared by reputed valuers at the instance of the Bank of China in connection with the loan transactions as a part of the ongoing exercise undertaken by the bankers. We had asked Saharas to obtain a confirmation from the Bank of China to the effect that the valuation reports prepared in respect of the three offshore hotel properties by CBRE and JLL have been prepared at the instance of the Bank of China and that the same had been accepted by the bank to be correct. We were of the view that such a confirmation would lend re-assurance to the Court that the valuation reports represented the true value of the stakes held by the Saharas in the said three properties. This is evident from the following portion of the order passed by us on 29th May, 2014:

(2.) Saharas have now made the present applications seeking certain directions. In I.As No. 8-9 of 2014, Shri Subrata Roy Sahara has prayed for temporary/conditional release from judicial custody for a period of 15 days or so to meet his nonagenarian and ailing mother as also for taking steps for compliance with the order of this Court dated 26th March, 2014. The applicant has, inter alia, stated that his mother Smt. Chhabi Roy who is aged over 93 years suffers from several ailments which complicate matters in view of her being in a fragile emotional state. The applicant Shri Subrata Roy Sahara is also, according to the averments, not keeping good health requiring medical attention. The application, however, stops short of elaborating the medical condition of the applicant Shri Sahara. More importantly, the application seeks release of Shri Sahara on parole with a view to negotiating deals directly with the purchasers who have shown interest in the purchase of the property being offered for sale by the Saharas.

(3.) In the accompanying I.As Nos.10, 11 & 12 of 2014 Saharas have prayed for permission to obtain a bank guarantee of Rs.5,000/- crores by leveraging the three overseas hotel properties by way of sale, mortgage in the light of the Bank of China's consent to such sale or transfer, and certification that the valuation reports were prepared at the instance of the Bank and accepted by it. The Saharas also seek permission for sale, hypothecation, mortgage/leverage the land owned by them and situate in Versova.