Tag Archives: Supreme Court of India

Few and far land deals ahead-I

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Sara Sahara Land Grab case, Supreme Court of India, Dawood Ibrahim, Track2Media, Track2Realty, ravi sinha, india realty news, india real estate news, real estate news india, realty news india, india property news, property news india, ndtv.com, ndtv, aajtak, zee news, india news, property news, real estate news, 99acres.com, 99 acres, indianrealtynews.com, indianrealestateforum.com, Mumbai Real Estate, India PropertyTrack2Realty Exclusive: Land as the major input of real estate business is still attracting a premium though land assembling at the cost of project execution has backfired on the fortunes of many realty companies in India.

Track2Realty studies the major land deals in the last one year to conclude project execution and serving the interest on loan has taken precedence over the pipeline visibility of the sector.

Some land deals nevertheless will continue to defy the trend in the year ahead, but no land purchase is expected for just creating land bank.

Conventional demand and supply wisdom of economics suggests short supply of a scarce commodity with expected price barrier in future attracts hoarding. Buyers even tend to go over drive when the product falls into non-perishable commodity.

In the business of Indian real estate land assembling has for long been the driving factor with realtors more focussed on assembling land instead of execution of launched projects. The downturn in the last four years, however, taught them a lesson that financial sustainability is more important than the pipeline visibility.

Many developers known for land buying spree have, of late, woken up to the reality of dried funding options, stalled projects, exiting investors and overall unsustainable business model.

And hence even though land assembling getting costlier and cumbersome post-Land Acquisition Bill, the land bank is something that is at the bottom of the developers’ focus now.

Facts speak for themselves. As per realty consultancy Cushman & Wakefield (C&W), India has witnessed around 25 per cent decline in land deals with expected revenue of around Rs 15,000 crore in the year 2012, as against land deals worth Rs 20,000 crore in 2011.

According to C&W, India had seen the transactions worth just around Rs. 7000-8000 crore in 2012 (till October).

Of course, sales of housing units have fallen by about 30 per cent across the country in the last one year.

“The market sentiment is very negative. This year we may see land deals worth Rs 15,000 crore happening across various locations in the country,” Cushman & Wakefield (C&W) Executive Managing Director (South Asia) Sanjay Dutt says.

…to be continued

Sahara bypassed norms to raise funds, SC told

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Sara Sahara Land Grab case, Supreme Court of India, Dawood Ibrahim, Track2Media, Track2Realty, ravi sinha, india realty news, india real estate news, real estate news india, realty news india, india property news, property news india, ndtv.com, ndtv, aajtak, zee news, india news, property news, real estate news, 99acres.com, 99 acres, indianrealtynews.com, indianrealestateforum.com, Mumbai Real Estate, India PropertyThe market regulator Securities & Exchange Board of India (SEBI) on Tuesday told the Supreme Court that the real estate arm of the Sahara group of companies had no right to mobilise Rs.27,000 crore from 30 million investors through debentures without complying with the regulatory regime.

The SEBI said the company raised the money through optional fully convertible debentures without complying with the regulatory regime of the stock market and listing on the bourses.

Senior counsel Arvind P. Datar, who appeared for the SEBI, told the apex court vacation bench of Justice K.S. Radhakrishnan and Justice J.S. Khehar that Sahara India Real Estate Corp. Ltd. (SIRECL) initially had every intention of going public but sought to camouflage it by saying that it did not intend to do so.

The other Sahara company involved in the case is Sahara Housing Investment Corp Ltd.

The court asked the Sahara firm’s counsel as to what was the material to show that it was not a public issue but a private placement.

Any company which made an private placement of shares or debentures to more than 49 people was treated as having made a public issue, and consequently was within the jurisdiction of the SEBI, Datar said.

Contending that the apex court should not disturb the Oct 18, 2011, order of the Securities Appellate Tribunal (SAT), Datar said that SIRECL had mopped up Rs.27,000 crore from 30 million investors and the entire amount was unsecured.

The balance sheet of the Sahara company did not inspire any confidence about the security of such a huge amount, he said.

The SAT directed SIRECL to refund the money to investors within six weeks along with 15 percent interest.

The apex court was told that of the Rs.19,400 crore raised by the companies, Rs.2,000 crore had been invested.

The senior counsel told the court that it would be “just and proper in the interest of justice” that the two Sahara companies be directed to refund all the amount that had been collected in violation of the statutory provisions governing the securities market.

The court was told that when SEBI followed up its query with SIRECL, it was told that the company had written to the corporate affairs minister and was awaiting a reply.

“The fact which needs more attention is that this massive mobilisation was made outside the well developed investor protection framework developed by the SEBI,” Datar said.

The senior counsel told the court that the prospectus filed by SIRECL was “false/misleading containing untrue statement”

SC admits Sahara plea; extends SAT order stay

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india realty news, india real estate news, real estate news india, realty news india, india property news, property news india, india news, property news, real estate news, India Property, Supreme Court of IndiaThe Supreme Court today admitted Sahara India Real Estate Corporation Limited (SIRECL’s) plea challenging the Securities Appellate Tribunal (SAT) order directing it to refund around Rs.17,400 crore to investors who had invested in its optionally fully convertible debentures (OFCDs).

A bench of Justice SH Kapadia, Justice AK Patnaik, and Justice Swatanter Kumar also extended the period for refunding the money till further orders. The bench posted the case for further hearing on January 20.

Sahara, meanwhile, submitted before the court that it had filed an affidavit explaining how it was going to protect the debenture holders.

On November 28 last year, the apex court had extended the refund order till January 9 and directed SIRECL to file an affidavit giving details of the application of the funds which has been collected from the depositors.

The bench had directed SIRECL (now known as Sahara Commodity Services Corporation Ltd) to explain in the affidavit the particulars of the network of the companies and its assets against which the liabilities has been created.

The bench had also directed SIRECL to give details of the balance sheets as on March 31, 2011 and the statement of accounts till November 30, 2011 of the companies.

Earlier in October, SAT had given SIRECL a deadline of six weeks to refund Rs.17,400 crore collected through the issuance of OFCDs with an interest of 15 per cent.

Sahara had approached the SC contesting the appellate tribunal’s October 18 order to refund the raised money to more than 23 million investors.

Supreme Court stays order on Sahara Group firms

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india realty news, india real estate news, real estate news india, realty news india, india property news, property news india, india news, property news, real estate news, India Property, Supreme Court of IndiaSupreme Court stayed a tribunal order directing two Sahara group companies to refund 174 billion rupees to investors, but sought details of their assets and liabilities on Monday, Nov 28.

The Supreme Court directed Sahara India Real Estate Corp. and Sahara Housing Investment Corp. to file a detailed affidavit explaining how they plan to protect the interests of 23 million investors.

The firms have been asked to provide the balance sheets for 2010-11 and statements of accounts for November 2011 by Jan. 8–the next hearing date. The Supreme Court also issued notices to the Central Government and to the Securities and Exchange Board of India, seeking their responses to Sahara group’s plea.

In June, SEBI–India’s market regulator–directed the two companies to return money they raised from investors by issuing six optionally fully convertible debentures.

The Securities Appellate Tribunal upheld the order on Oct. 18, saying the amount will have to be repaid within six weeks.

SEBI said the fundraising by Sahara Commodity Services Corp. and Sahara Housing Investment Corp. was illegal.

Sahara India Real Estate Corp. is now known as Sahara Commodity Services Corp. Ltd.

Officials at SEBI and Sahara Group couldn’t immediately be reached for comment.

Sahara moves SC against SAT order

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india realty news, india real estate news, real estate news india, realty news india, india property news, property news india, india news, property news, real estate news, India Property, Supreme Court of IndiaThe two Sahara Group companies, Sahara India Real Estate Corporation (now known as Sahara Commodity Services Corporation) and Sahara Housing Investment Corporation have moved the Supreme Court challenging the sectoral tribunal’s order asking the Group to refund around Rs.24,000 crore to investors who had invested in its optionally fully convertible debentures (OFCDs).

The Sahara Group has challenged the Securities Appellate Tribunal (SAT) judgment that upheld market regulator SEBI’s June 2010 order indicting the two Sahara Group firms for raising funds from the public through the OFCD scheme without conforming to prudent disclosure and other investor protection norms governing such public issues.

SAT had also given a nod to SEBI’s order asking both the companies and their promoters and directors to refund the entire proceeds of its OFCDs to investors with 15 per cent interest.

Supreme Court upholds decision against flats in Noida Extension

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india realty news, india real estate news, real estate news india, realty news india, india property news, property news india, india news, property news, real estate news, India Property, Supreme Court of IndiaThe Supreme Court today, July 6, upheld the Allahabad High Court order that had quashed the Greater Noida Authority’s acquisition of land in the Shahberi village that falls under Noida Extension. The Supreme Court also imposed a fine of Rs. 10 lakh on the Greater Noida Authority. Noida Extension is the name given to a group of villages in the Noida-Greater Noida region.

In May, the Allahabad High Court had quashed the Greater Noida Authority notification for acquiring over 150 hectares of land in the village.

Delivering the order, the Supreme Court bench comprising Justices G S Singhvi and A K Ganguly said, “Everything is meticulously planned. Your offers know it would be handed over to builder for private purpose but doesn’t happen overnight. Officers know very much. It is a brazen overreach of judicial process. The authority has to act in public interest but what it did was to serve private builders interest. You don’t understand the psyche of farmer. Land is his mother.”

The SC said the Greater Noida Authority had undertaken the allotment of land to builders in complete violation of the purpose for which the land was acquired and the land usage was changed even before getting approval from the state government.

The Greater Noida Authority had earlier bought lands from farmers for industrial projects, but later changed the land usage to residential projects.

On Tuesday, the Court had slammed the authorities for taking advantage of the “colonial law” on land acquisition to divest farmers of their prime agricultural land benefitting the rich and paying “pittance” to common men.

The Supreme Court’s decision is likely to affect several builders including Amarpali, Ajnara, Mahagun, Supertech, Paramount and Panchsheel.

Sahara moves SC against SEBI order on refunds

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india realty news, india real estate news, real estate news india, realty news india, india property news, property news india, india news, property news, real estate news, India Property, Supreme Court of India, Subrata Roy, Sahara India,  Track2Media, Track2RealtySahara Group has moved the Supreme Court against capital market regulator SEBI’s order asking it to return money collected from investors through a scheme along with 15 per cent interest.

A vacation bench headed by Justice P Sathasivam directed the matter to be listed for hearing on July 4, the first day after the vacation. Sahara India has criticised market regulator’s move to make its order public when the matter is pending before the Supreme Court.

SEBI on June 23 had directed two Sahara group companies — Sahara India Real Estate Corp (SIRECL) and Sahara Housing Investment Corp (SHICL) — to refund the money raised from investors through optionally fully convertible debentures (OFCDs) with an annual interest of 15 per cent from the date of receipt of money.

The Sahara group firm sought court directions to SEBI to remove the order from its website and restrain the market regulator and its officials from publicising the order which it has challenged. The Sahara’s counsel argued that the company wants SEBI to expunge the parts of the order directing it to return money with interest to the investors as it has created a panic among the investors.

Vacate Sara-Sahara, court told tenants

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Sara Sahara Land Grab case, Supreme Court of India, Dawood Ibrahim, Track2Media, Track2Realty, ravi sinha, india realty news, india real estate news, real estate news india, realty news india, india property news, property news india, ndtv.com, ndtv, aajtak, zee news, india news, property news, real estate news, 99acres.com, 99 acres, indianrealtynews.com, indianrealestateforum.com, Mumbai Real Estate, India PropertyThe 31 tenants in the Sara and Sahara shopping centres, which are allegedly owned by underworld don Dawood Ibrahim, will have to vacate the premises after the city civil court on Friday dismissed their appeal challenging the eviction notice. While dismissing their appeal, Justice GA Sanap observed that the land belonged to the Government of India and the tenants’ possession of the property was illegal.

The court has, however, stayed its order for six weeks to allow them time to approach the Bombay High Court. If they don’t move the higher court, the central public works department (CPWD) can take action and evict the tenants.

The tenants of the two shopping centres near Crawford Market had challenged the eviction order issued by the estate officer in December 2010-January 2011. Earlier, the estate officer had issued show cause notices in 2008.

Initially, the CPWD had issued the eviction notice, but the tenants had challenged it before the estate officer.

GR Sharma, the government’s special counsel, had argued that the land was originally leased out in 1939 by the erstwhile British government to a Mohamedbhoy Abdullabhai Moonim. The agreement was between the two parties, with no clause permitting sub-letting or handing over tenancy rights, Sharma said, pointing out that the deal also did not recognise that the rights would be passed to a leasee’s heir after the original tenant passed away.

Thus, when Moonim passed away in 1979, the ownership rights reverted to the government of India, Sharma argued.

In 2001, Global Marketing, a firm headed by convict Abdul Rehman sub-let the premises to another firm, Sara Associates, allegedly in connivance with officers from the Brihanmumbai Municipal Corporation. Sara Associates then allowed tenants to open shops in the complex.

The alleged fraud came to light when Nafisa Shaikh, a hutment dweller, lodged a complaint with the court alleging that “Rehman boss” had threatened her to vacate her hut, which was blocking the entrance to the shopping centres.

Dawood’s brother, Iqbal Kaskar, was arrested for illegal construction on the plot, but the special court acquitted him for lack of evidence under the Maharashtra Control of Organised Crime Act (MCOCA). The court also acquitted builder Gulam Nabi Tanwar and four civic officials in 2007. It convicted three persons in the case.

Sahara directed to provide details on OFCD Scheme by SC

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Supreme Court of India, Subrata Roy, Sahara India, Delhi NCR real estate, Bangalore Real Estate, Track2Media, Track2Realty, ravi sinha, india realty news, india real estate news, real estate news india, realty news india, india property news, property news india, ndtv.com, ndtv, aajtak, zee news, india news, property news, real estate news, 99acres.com, 99 acres, indianrealtynews.com, indianrealestateforum.com, Mumbai Real Estate, India PropertySeeking more clarity on the Optionally Fully Convertible Debentures (OFCDs) scheme, the Supreme Court on Monday directed Sahara India Real Estate Corporation Limited (SIRECL) to submit an affidavit containing the format of OFCD scheme and the list of agents working on its behalf.

Inquiring about the format in which the scheme was made, the Bench of Chief Justice of India SH Kapadia, Justice KS Panicker Radhakrishnan, and Justice Swatanter Kumar asked, “In what format have you prescribed the scheme? Are these forms prescribed by Security and Exchange Board of India (SEBI)?”

Surprised that such complex scheme was being distributed for investment to a large number of people, the Bench asked, “How did the investors, many of whom are villager, come to know of the concept of the OFCDs scheme?”

Senior Advocate Soli Sorabjee appearing for Sahara Group, replied that there were agents who interact with potential investors and inform them about the scheme.

To this the Bench directed Sahara Group to furnish the list of all the agents along with the application format of the scheme by Thursday.

SEBI had on 24 November 2010 passed an interim restraint order against Sahara Group with respect to issuance of OFCDs. Sahara Group had moved the Allahabad High Court where a stay was granted against the SEBI order. The High Court however allowed SEBI to proceed with its enquiry on the OFCDs.

On 4 January 2011, SEBI moved a petition before the Supreme Court where it was observed that SEBI would be allowed to call for any information from Sahara Group including the names of the investors who have invested in the OFCDs to complete its investigation.

Unsatisfied with the information provided by Sahara Group, on 5 April 2011, SEBI filed an application before the High Court complaining that Sahara Group had not furnished the complete information asked by it. The High Court after taking the submission of SEBI vacated its earlier interim order putting into effect the restraint order on the issuance of OFCDs.

Sahara Group later moved the Supreme Court with the petition to recall the order of the High Court which restricted them to issue OFCDs. Sahara Group stated that they have furnished full information to SEBI such as details of the investors, their names, addresses and the amount invested. On the delay in handling the information, SIRECL had given the explanation that there were 66 lakhs  investors and so the compiling of the information took time.

SEBI moves apex court on Sahara

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SEBI, RBI, Securities and Exchange Board of India, Reserve Bank of India, Delhi NCR real estate, Bangalore Real Estate, Track2Media, Track2Realty, ravi sinha, india realty news, india real estate news, real estate news india, realty   news india, india property news, property news india, ndtv.com, ndtv, aajtak, zee news, india news, property news, real estate news, 99acres.com, 99 acres, indianrealtynews.com, indianrealestateforum.com, Mumbai Real Estate, India PropertyThe Securities and Exchange Board of India (SEBI) has filed a caveat in the Supreme Court claiming that any petition on its ongoing case against two Sahara group entities cannot be decided without its knowledge.

Sahara India Real Estate Corporation and Sahara Housing Investment Corporation are under the capital market regulator’s scanner for raising money from the public through optionally fully convertible debentures.

A SEBI counsel said the caveat, filed on Saturday, aims to prevent any ex parte decisions (those taken in the absence of one of the parties to a case) on the matter.

Sahara said on Friday it had filed a special leave petition in the Supreme Court seeking relief against the Allahabad High Court’s April 7 order vacating a stay on an earlier SEBI direction, which had restrained the two firms from raising money from the public.

“We are law-abiding and we are not accepting deposit,” added the Sahara statement, which was issued after SEBI’s public notice on Friday informing investors about the April 7 ruling.

This is the second time in the last three months that the matter has come up before the apex court. In January, a Supreme Court bench led by Chief Justice of India S H Kapadia had given permission to SEBI to seek and obtain all information regarding the money-raising activities of the two Sahara group firms.

Last week, the high court found that the Sahara group had not kept its commitments on sharing the information sought by SEBI. While Sahara stated that it had over 6.6 million investors in the debentures issued by the two firms, it did not give details like addresses of investors.

Sahara’s Friday statement said, “The stay was vacated because we could not supply certain information to SEBI in time. However, we have given more than 90 per cent information. It is also pertinent to state that the SEBI counsel had assured and undertaken in the high court on March 4 that the data provided by the company shall be used only for the inquiry and SEBI will not misuse the same. Sahara supplied certain information on March 18 to SEBI but after receiving the data, SEBI has, vide its letter dated March 23, refused to abide by the assurance.”

The regulator’s counsel feels that the conditions laid down by Sahara, that the regulator cannot share the information with other regulators and government agencies or make it public, are stretching the condition of confidentiality too far and preventing SEBI from taking its investigation ahead.

In November, SEBI had barred Sahara India Real Estate Corporation and Sahara Housing Investment Corporation and their promoters and directors from raising money from the public. However, after Sahara India Real Estate Corporation challenged SEBI’s order in a writ petition before the Allahabad High Court’s Lucknow Bench, the court passed an interim order on December 13, staying the operation of the SEBI direction. But it allowed SEBI to proceed with the inquiry.