Thread by @barandbench

Supreme Court to hear plea of Sahara India Commercial Corporation Ltd (SICCL) seeking its nod to sell various properties, including Amby Valley in Maharashtra and Shahara Saher in Lucknow, to Adani Properties Private Limited #SupremeCourt #Sahara #Adani

Bench: CJI BR Gavai, Justices Surya Kant, and MM Sundresh

Sr. Adv. Kapil Sibal: I am appearing for Sahara. We are suggesting a plan.

SG Tushar Mehta: this appears to be a good suggestion. But the centre also may have to examine and put its thoughts. Request is to implead secretaries of cooperative societies. We can then present our picture.

Counsel for SEBI: the properties can be sold by Sahara. Not less than 90% of market rate. There is no requirement for us to examine any proposal as long as there are with the Court’s directions.

Counsel: my suggestion is that sahara must deposit principal amount. As of today they are in deficit of 9000 odd crores.

Justice Kant: about couple of days back a matter came up where there was direction to disburse 500cr.

Counsel: that was for the cooperative societies.

Sibal: that is being done from the SEBI-SAHARA fund.

Sr. Adv. Gopal Sankarnarayanan: there are 88 properties in their application. Several of us have grievances related to that. Either it has been sold to us, there are agreements etc. an amicus may be appointed to look into it….

CJI: better will be the centre and the amicus apply their mind to the suggestion.

Counsel: first SAHARA will have to deposit that 9000cr. Then the question is of interest. That has to be decided.

Sibal: the person buying those properties will have to deposit 12000cr. More than that. Who is going to get the interest?

Counsel: the decree as it stands is 15% interest.

Sibal: only if there are depositors to be found. Not otherwise.

Counsel for an applicant: these lands are situated in different states. We wrote to them that we want to buy them. But they are not responding to us. We are willing to match any offer.

Justice Kant: there may be bidders who might offer 10 times more than you.

Justice Sundresh: one problem is with respect to the competing interests of the parties. Then we have to consider the scheme….

CJI: rights have to be crystallised.

Sankarnarayanan: some lands cannot be sold. For example there are 2 that are wetlands.

CJI: even if they purchase wetlands they can’t construct.

Counsel: I will put my suggestions in writing. First the deficit amount has to be deposited. Second the claims have to be crystallised…. I will put all this on paper, let them respond to it.

Sr. Adv. Pradeep Rai: the employees have to be paid. They are talking about thousands of crores but not talking about this...

Sr. Adv. Arvind Datar: there are 88 properties. Not all of them are disputed. They can segregate the clean ones and those can be sold. The employees and the other applications etc can be heard separately. The properties were first given to SEBI to sell but there were so many encumbrances they could not sell. So court asked Sahara to sell. There’s a sealed cover too which Sahara has given properties worth 1.6lakh crore. Court had also said that if debenture holders can’t be found then give the money to the government.

Sr. Adv. Mukul Rohatgi (for Adani properties): I have made an offer of buying all the properties. Otherwise this litigation will be endless. Otherwise it’s impossible. This struggle will go on. This may be sent to a committee, they can examine it. I am also saying that I will take the properties with all the claims.

Counsel: we’ll have to prepare a tabulated statement on each IA. Then it will come out how many proprieties are in dispute. Once Sahara pays principal amount….

CJI: how many times will you say the same thing? If they don’t sell the properties how will they deposit?

Sibal: it has to be sold together in a basket. Otherwise it will not be sold. We remember what happened in Versova.

Order: IA filed by Sahara India Commercial Corporation (SICC). SG says it will be appropriate that before considering the prayers made in the application the Union must be heard. We direct the applicant to implead the MoF… The application also consists properties where rights are yet to be crystallised between certain parties. The Amicus states that Sahara housing and Sahara real estate deposit the amount … the UoI, SEBI, Amicus….

CJI: in respect to 88 properties some one can apply their mind and see which ones are disputed.

Sibal: we have no idea. The employees are dealing. We don’t know which ones are sold. As and when that is discovered it’ll be dealt with.

Order: before we consider the application it will be appropriate that the parties who claim to have rights in any of the properties listed in the application may submit to the amicus. We request the amicus to take help of an assisting counsel who can collate such information in a chart showing such properties where there are disputed, where rights are crystallised, and where there is a shadow of doubt.

Order: we request UoI, Amicus, and SEBI to respond to the prayers made in the IA. We direct Sahara to examine the claim of the workers on the next date.

CJI: we will decide on whether the properties are to be sold piece meal or in one flock.

Order: list after 4 weeks from today. 17th November.