Sahara India Real Estate Corp.Ltd.& Ors vs Securities & Exch.Board Of India & Anr

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 26 th 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.

11. There is, in our opinion, merit in the contention urged by Dr. Dhavan. What is important is that the properties held by the Saharas are sold at their market value and the sale proceeds, subject to any other directions issued by this Court, utilised for 16 compliance with the terms of the conditional bail order issued by this Court. It is evident that if sale of properties situate within the country is likely to take time, the contemnors may be exposed to a longer period of incarceration on account of their failure to comply with the directions of this Court. On the other hand, quicker the compliance with the directions of the Court’s Order for deposit of cash and bank guarantee, the easier would be the way out of jail for them. The anxiety on the part of the Saharas generally and the contemnors in particular to sell the offshore properties is, therefore, understandable especially when such sale and transfer is not only going to help Saharas in liquidating the outstanding loan amount payable to the Bank of China but leave sufficient surplus with the Saharas to not only deposit the balance of Rs.2,000/- crores approximately that needs to be immediately paid by them but also furnish a bank guarantee for a sum of Rs.5,000/- crores, as directed. We, therefore, see no legal impediment in permitting the sale of the offshore properties owned by Saharas. This is particularly so when not only do we have the valuation reports of the said properties on record prepared as they are by internationally reputed valuers but also the concurrence of SEBI for the sale of 17 such properties at that value subject to the condition that the sale consideration shall as far as possible be at the estimated value of such properties, less, at the most by 5% of such value. We are, mindful of the fact that Saharas have sold the property at Ahmedabad at more than three times the circle rates of such property. No such rates are, however, available or prescribed for offshore properties. We shall, therefore, have to go only by the valuation reports of the valuers as the basis for such proposed sale/transfer subject to a margin of 5% which we have indicated above. In case the offer received is lesser by more than 5%, they will seek prior approval of the Court.

14. In the result :

3. We clarify that sale of remainder of the properties which Saharas have been allowed to transfer, sell or encumber in terms of our order dated 4 th June, 2014 shall not be at a price less than the estimated value of 21 the said properties reduced at the most by 5% of such estimate.