Supreme Court Orders Sahara Group to Deposit Rs 1,000 Crore in Escrow Account

The Supreme Court directed Sahara Group to deposit Rs 1,000 crore in an escrow account within 15 days and permitted it to enter joint ventures for developing its land. If the joint venture agreement is not filed, the court will sell the land at Versova on an 'as is where is' basis.

The Supreme Court on Thursday ordered Sahara Group to deposit Rs 1,000 crore in a separate escrow account within 15 days, while allowing it to enter a joint venture for developing its Versova land in Mumbai. This move aims to raise Rs 10,000 crore for the SEBI-Sahara refund account, which serves to return investors' money following the apex court's 2012 order.

A bench comprising Justices Sanjiv Khanna, MM Sundresh, and Bela M Trivedi mandated that if the joint venture agreement is not filed within 15 days, the court will sell the 12.15 million square feet of land at Versova on an 'as is where is' basis. Should the joint venture plan proceed, the Rs 1,000 crore deposited by a third party will be maintained in the escrow account for approval.

The court set the next hearing for a month later, allowing Sahara Group—comprising Sahara India Real Estate Corporation Ltd and Sahara Housing Investment Corporation Ltd—to also explore joint ventures for other properties, including the Aamby Valley project in Mumbai. However, all transactions must meet SEBI-regulated standards and have the court's pre-approval. The case continues to develop as the Sahara Group faces significant challenges for non-compliance with past court orders.

(With inputs from agencies.)