New Delhi, October 14, 2025:
In a significant turn in the long-running Sahara-SEBI refund dispute, the Supreme Court of India on Monday directed that the Union Ministries of Finance and Co-operation be impleaded as parties to the Sahara Group’s plea seeking approval to sell 88 immovable properties across India to Adani Properties Ltd.
The Bench comprising Chief Justice of India B.R. Gavai, and Justices Surya Kant and M.M. Sundresh, issued the direction after hearing submissions from Solicitor General Tushar Mehta and Senior Advocate Kapil Sibal, who appeared for Sahara. The case will next be heard on November 17, 2025.
Amicus to Analyse Property Claims
The Court also directed Amicus Curiae Shekhar Naphade to analyse and tabulate the claims regarding the 88 properties that Sahara proposes to sell. The amicus has been asked to prepare a comprehensive chart distinguishing properties that are:
- under dispute,
- where rights have been crystallised, and
- those where there exists a “shadow of doubt.”
The Bench observed that before considering Sahara’s request for sale approval, it was necessary to obtain the Union Government’s perspective, given the financial and regulatory implications of the proposed transaction.
“The Solicitor General says it would be appropriate that before considering the prayers made in the application, the Union must be heard,” the Bench recorded.
“We direct the applicant to implead the Ministry of Finance. The application also consists of properties where rights are yet to be crystallised between certain parties. We request the amicus to take help of an assisting counsel who can collate such information in a chart,” the order stated.
Centre’s Role and Solicitor General’s Submission
Solicitor General Tushar Mehta, appearing for the Union Government, emphasised that the Centre’s views were essential before the Court takes any decision on the proposed asset sale.
He suggested that the Secretaries of the Ministries of Finance and Co-operation be impleaded as parties, noting that “the Centre also may have to examine and put its thoughts” on the matter.
The Bench accepted this suggestion, thereby bringing both ministries formally into the proceedings.
Details of Sahara’s Applications
Two applications were filed before the Supreme Court through Advocate Gautam Awasthi on behalf of Sahara India Commercial Corporation Limited (SICCL) and Sahara India Real Estate Corporation Ltd (SIRECL).
1. SICCL’s Plea to Sell 88 Properties
SICCL has sought judicial permission to sell 88 immovable properties under a term sheet dated September 6, 2025, executed with Adani Properties.
The properties include major assets such as:
- Aamby Valley City (Maharashtra)
- Hotel Sahara Star (Mumbai)
- Sahara Shaher (Lucknow)
- Sahara Ganj Mall (Lucknow)
- and large tracts of land in multiple states
Sahara stated that the proceeds from the sale would be deposited into the SEBI–Sahara Refund Account, created pursuant to earlier Supreme Court directions for repaying investors in Sahara’s Optionally Fully Convertible Debentures (OFCDs).
The group claimed to have already deposited ₹16,000 crore in the account, while SEBI has allegedly repaid only a fraction to investors despite prior attempts to liquidate Sahara’s assets.
Background: Sahara’s Financial and Legal Struggles
The Sahara case originates from the 2012 Supreme Court judgment which held that Sahara’s issuance of OFCDs worth ₹24,030 crore was illegal and directed the group to refund the amount with interest.
Since then, Sahara has maintained that it complied with the order by depositing large sums with SEBI, but has repeatedly alleged that regulatory bottlenecks and multiple investigations have hampered further repayments.
Following the death of founder Subrata Roy in November 2023, the conglomerate has struggled with leadership challenges while facing parallel probes by agencies such as the Enforcement Directorate (ED), Serious Fraud Investigation Office (SFIO), and state police authorities.
Sahara’s Request to the Supreme Court
In its latest plea, Sahara sought multiple directions from the apex court:
- Approval to complete the sale of 88 properties to Adani Properties.
- Constitution of an independent oversight committee chaired by a retired Supreme Court judge, to:
- monitor the sale process,
- address objections or rival bids,
- supervise investor repayments and creditor settlements.
- Lifting of existing attachment orders imposed by regulatory or investigative bodies.
- Stay on all parallel proceedings or coercive actions by enforcement agencies during the sale process.
The group argued that such protection was necessary to prevent interference that could derail the transaction and delay repayments to millions of investors.
SIRECL’s Application on Use of Sale Proceeds
In a parallel application, Sahara India Real Estate Corporation Ltd (SIRECL) urged the Court to oversee the utilisation of proceeds from the proposed Adani transaction.
SIRECL contended that while the sale would generate substantial funds for repayments, Sahara would be left without sufficient operational assets to continue functioning and meet other obligations — including:
- dues to investors and employees,
- statutory taxes,
- provident fund and gratuity payments, and
- operational creditor settlements.
SIRECL requested that the oversight committee be empowered to crystallise and discharge all such liabilities from the sale proceeds and sought a moratorium on investigations to ensure that the process remains unimpeded.
Article 142 Powers and SEBI-Sahara Refund Account
Both Sahara entities have invoked the Supreme Court’s extraordinary powers under Article 142 of the Constitution, requesting the Court to exercise its inherent jurisdiction to facilitate a comprehensive settlement of investor claims.
They argue that piecemeal proceedings before different forums have only complicated the repayment process and that a unified judicial mechanism would best serve investor interests and regulatory compliance.
The SEBI–Sahara Refund Account currently holds funds from Sahara’s earlier deposits. In March 2023 and again in September 2025, the Supreme Court ordered transfer of ₹5,000 crore each — totaling ₹10,000 crore — from this account to the Central Registrar of Cooperative Societies, to repay depositors in Sahara-linked cooperative societies.
Next Steps
The matter will now be heard on November 17, 2025, when the Court is expected to review:
- the tabulated report prepared by Amicus Curiae Shekhar Naphade,
- the Finance Ministry’s submissions, and
- further clarifications from Sahara and SEBI regarding the proposed property sale.
The Bench’s decision to involve the Finance and Co-operation Ministries signals a shift toward a broader policy-oriented approach, balancing investor protection, financial regulation, and corporate accountability.
Conclusion
The Supreme Court’s intervention in the Sahara–Adani property sale proposal marks a critical phase in the decade-long saga surrounding the Sahara refund case.
By seeking the Finance Ministry’s opinion and directing the Amicus Curiae to classify disputed properties, the Court appears intent on ensuring transparency, accountability, and regulatory oversight in any asset monetisation process.
As the case returns for hearing in November, all eyes will be on whether the apex court allows Sahara to proceed with the Adani transaction — a move that could reshape the financial future of the Sahara Group and potentially resolve long-pending dues to millions of investors.
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