Case BriefsSupreme Court

Supreme Court: The 3-judge bench of Dipak Misra, CJ and Ranjan Gogoi and Dr. AK Sikri, JJ , refusing to grant of further time to Sahara Group and Subrata Roy and entertaining post-dated cheques which are dated 11th November, 2017, said that the same would tantamount to travesty of justice and extending unwarranted sympathy to a person who is indubitably (that which cannot be doubted: Cambridge Dictionary) an abuser of the process of law. The Court, hence, directed the Official Liquidator to carry out the auction of the Aamby Valley property.

The Court directed that the auction be held as per the direction given by this Court and that the Official Liquidator is permitted to carry out the auction as per procedure and during the auction the Registrar General of the High Court of Bombay, who is designated as the Supreme Court appointee, shall remain personally present to over-see the physical auction at the auction venue at Mumbai.

Kapil SIbal, appearing for Sahara, argued that it was the first case where a contemnor had paid the substantial amount which may go up to Rs. 16,000 crores, and though approximately Rs.8651 crores is due, that should not be held against him. He added that tremendous efforts have been made by the respondent-contemnor to comply with the order of this Court and if the prayer made by him is not accepted, the principle of reasonableness would be defeated.

Senior counsel Arvind P. Datar, appearing for SEBI, contended that the auction has to proceed and this kind of “drama of procrastination” must stop. Amicus Curiae Shekhar Naphade also urged that the conception “enough is enough” should be adopted by this Court and there is no reason why long rope should be given to the respondent-contemnor to play truancy and seek indulgence.

Agreeing with the contentions of SEBI and amicus curiae, the bench said:

“He, who thinks or for that matter harbours the notion that he can play with law, is under wrong impression.”

Coming down heavily upon Subrata Roy, the Court said:

“the respondent-contemnor in his own way has treated this Court as a laboratory and has made a maladroit (awkward in movement or unskilled in behaviour or action: Cambridge Dictionary) effort to play, possibly thinking that he can survive on the ventilator as long as he can. He would have been well advised that a person who goes on a ventilator may not survive for long and, in any case, a time would come when he has to be comatosed.”

[SEBI v. Sahara India Real Estate Corporation Ltd, 2017 SCC OnLine SC 1069, order dated 11.09.2017]

 

Case BriefsSupreme Court

Supreme Court: The 3-judge bench of Dipak Misra, Ranjan Gogoi and Dr. A.K. Sikri, JJ refused to entertain the plea of Sahara Group of Companies to stop the auction and lift the attachment on the Aamby Valley City and allow Aamby Valley Ltd., to enter into the agreement with Royal Partners Investment Fund Ltd., for investment of US$ 1.67 Billion.

The Court said that it is not inclined to entertain the aforementioned  prayers, however, if the applicant enters into any negotiations and deposits the amount before this Court, appropriate order shall be passed on the next date of hearing. [SEBI v. Sahara India Real Estate Corpn. Ltd., CONMT.PET.(C) No. 412 /2012, order dated 10.08.2017]

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Supreme Court: The bench of Dipak Misra, Ranjan Gogoi and Dr. A.K. Sikri , JJ told the Sahara Group of Companies and it’s head Subrata Roy that it will order the commencement of the Aamby Valley auction process of Rs. 1500 Crores are not deposited with the SEBI by 07.09.2017. The Court has listed the matter on 11.09.2017.

The bench had, on 06.02.2017, allowed SEBI to attach the Aamby Valley property along with other properties belonging to the Company and Subrata Roy, after SEBI had submitted that the Aamby Valley property would be sufficient for realization of the whole amount.

Source: PTI

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Supreme Court: The Court rejected the Sahara Group’s request to extend the 15.07.2017 deadline for realisation of Rs. 552.21 Crores Cheque.  On 29.04.2017, the bench of Dipak Misra, Ranjan Gogoi and Dr. A.K. Sikri, JJ said that the cheques shall be honoured in all circumstances on presentation on the due date failing which Subrata Roy will be sent back to custody.

Source: PTI

Case BriefsSupreme Court

Supreme Court: Allowing the Sahara Group of companies to submit 2 post-dated cheques of around Rs. 2052.21 Crores i.e. one of Rs. 1500 Crores dated 15.6.2017 and the second one of Rs. 552.21 Crores dated 15.7.2017, the bench of Dipak Misra, Ranjan Gogoi and Dr. A.K. Sikri, JJ said that the cheques shall be honoured in all circumstances on presentation on the due date failing which Subrata Roy will be sent back to custody.

On 17.04.2017, the Court had also asked Dr. Prakash Swamy to appear before the Court, who had filed an interim application giving a proposal that MG Capital Holdings LLC, New York, USA, shall purchase the Hotel Plaza by giving 550 million US dollars and to show its bona fide, had agreed to deposit Rs.750 crores with SEBI Sahara Refund Account but had failed to deposit the sum. Dr. Prakash Swamy submitted that he was not a stake holder or a partner and on the basis of personal friendship, he had filed the affidavit and that he is a retired person and has no source of income. Holding him guilty of contempt of court, the Court imposed a simple imprisonment for a term of one month and directed that he will serve his term in Tihar Jail.

The matter will next be taken up on 19.06.2017. [SEBI v. Sahara India Real Estate Corpn. Ltd., 2017 SCC OnLine SC 492, order dated 27.04.2017]

Case BriefsSupreme Court

Supreme Court: The bench of Dipak Misra, Ranjan Gogoi and Dr. A.K. Sikri, JJ ordered the auction of the Aamby Valley City near Lonavala, Maharashtra due to non-payment of amount as agreed by the Sahara Group of Companies and asked the contemnors to provide all the necessary details relating to the property to the Official Liquidator of the Bombay High Court within 48 hours. The Court also asked Subrata Roy Sahara to remain personally present before the Court on the next date of hearing i.e. 27.04.2017.

The Court also directed the Power of Attorney Holder Dr. Prakash Swamy, who had filed an interim application giving a proposal that MG Capital Holdings LLC, New York, USA, shall purchase the Hotel Plaza by giving 550 million US dollars and to show its bona fide, had agreed to deposit Rs.750 crores with SEBI Sahara Refund Account, to appear before the Court on the next hearing. Since no sum was deposited by him, the Court asked Rana Mukherjee, the senior counsel appearing for the Union of India to intimate the Ministry of External Affairs, Government of India, so that Dr. Prakash Swamy does not leave India and asked him hand over his address and the passport number. The Court also directed him to deposit a sum of Rs.10 Crores in the SEBI Sahara Refund Account within 10 days, which shall be forfeited towards costs,  failing which this Court may issue non-bailable warrants of arrest against him.

Stating that the contemnor shall be guided by the affidavit that has been sworn and filed before this Court and not play truancy with the contents of the affidavit, the Court said that “He who plays truancy with the Majesty of Law, invites the wrath and, may, ultimately, has to suffer the peril.” [SEBI v. Sahara India Real Estate Corpn.Ltd, 2017 SCC OnLine SC 407, order dated 17.04.2017]

Case BriefsSupreme Court

Supreme Court: Allowing SEBI to attach the properties belonging to Sahara Group, the Court directed Sahara to file a list of properties that can be put to public auction by 27.02.2017.

The 3-judge bench of Dipak Misra, Ranjan Gogoi and A.K. Sikri, JJ said that the properties suggested for public auction shall be free from any encumbrance which means that the properties should not be encumbered in any manner whatsoever.

Pratap Venugopal, appearing for SEBI had submitted that the property of the contemnors, situated at Aamby Valley City, Pune, Maharashtra, would be sufficient for realization of the whole amount. He insisted that the property should be attached so that the contemnors shall make all endeavour to deposit the amount with SEBI. Accepting the aforementioned submission, the Court directed for attachment of the Aamby Valley property. The matter is listed to be heard on 27.02.2017. [Sahara India Real Estate Corpn.Ltd v. SEBI, CONMT.PET.(C) Nos.412 & 413/2012, order dated 06.02.2017]

 

Case BriefsSupreme Court

Supreme Court: Refusing to extend the deadline to deposit the amount of Rs. 600 Crores before 06.02.2017, the 3-judge bench of Dipak Misra, Ranjan Gogoi and Dr. A.K. Sikri, JJ reiterated that if the Sahara India Real Estate Corporation Ltd., does not deposit the amount, the contemnors including Subrata Roy shall be committed to prison. The contemnors had sought the modification of the order dated 28.11.2016 where the 3-judge bench of T.S. Thakur, former CJ and Ranjan Gogoi and Dr. A.K. Sikri, JJ had directed that the said amount be deposited by 06.02.2017.

The Court, however, permitted the contemnors to transfer thirty-five million pounds equivalent to Rs.285 crores lying in Saharas account in London bank as no objection was raised to the same by SEBI and Union of India.

The matter has been listed to be heard on 07.02.2017. [SEBI v. SAHARA INDIA REAL ESTATE CORPN.LTD, CONMT. PET.(C) Nos.412/2012, order dated 12.01.2017]

Case BriefsSupreme Court

Supreme Court: The bench of T.S. Thakur, CJ and Ranjan Gogoi and Dr. A.K. Sikri, JJ directed the Saharas to deposit the amount of Rs. 600 Crores before the next date of hearing i.e. 06.02.2017. The Court made it clear that if the said amount is not deposited on the aforementioned date, the parole of Subrata Roy will come to an end and he will be committed to prison.

Kapil Sibal, appearing for Sahara, argued that since the money which the Saharas have to deposit has to be raised by selling immoveable assets and since this Court has imposed a restriction as to the consideration for which the properties can be sold namely 90% of the circle rate prescribed for such properties, the Saharas may not find purchasers if that condition remains operative. Refusing to modify the said condition as of now, the Court said that in any given case, if there is a proposal to sell any item at a price less than 90% of the circle rate, the Saharas shall be free to apply for permission of the Court in which event the Court would pass appropriate orders after hearing the counsels for SEBI. [SEBI v. SAHARA INDIA REAL ESTATE CORPN.LTD, CONMT.PET.(C) No. 412/2012, order dated 28.11.2016]