S.E.B.I. versus SAHARA INDIA REAL ESTATE CORPORATION LTD. & ORS.

S.E.B.I. versus SAHARA INDIA REAL ESTATE CORPORATION LTD. & ORS.

Modification of bail terms and transfer of contemnors out of judicial custody is rejected due to their dilatory tactics and background of non-compliance. Restraint orders were partially lifted, allowing sale or mortgage of specified properties at not less than circle rates, to facilitate compliance with payment directions. Sale of overseas properties awaits further documentation/verification.

Parties
Petitioner: Securities and Exchange Board of India (SEBI); Respondents: Sahara India Real Estate Corporation Ltd. (SIRECL); Sahara Housing Investment Corporation Ltd. (SHICL); Subrata Roy Sahara; Vandana Bhargava; Ravi Shankar Dubey; Ashok Roy Choudhary
Jurisdiction
India
Judgment Date
04 June 2014
Procedural Posture
Contempt Petition (civil); Civil Appeal; Interlocutory Applications (i.a.) / Interlocutory Application and Contempt Proceedings, Referred to Three Judge Bench
Outcome
Interlocutory applications disposed; partial relief granted on asset sale, no relaxation of custody or bail terms; three-Judge Bench reference.
Legal Topics
Investor Protection, Fraudulent Mobilisation of Funds, Refund of Public Deposits, Enforcement of Regulatory Orders, Judicial Custody and Bail Conditions
Securities Law Company Law Contempt of Court Investor Protection Fraudulent Mobilisation of Funds Refund of Public Deposits Enforcement of Regulatory Orders Judicial Custody and Bail Conditions

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Parties

Securities and Exchange Board of India (SEBI)

Petitioner

Sahara India Real Estate Corporation Ltd. (SIRECL); Sahara Housing Investment Corporation Ltd. (SHICL); Subrata Roy Sahara; Vandana Bhargava; Ravi Shankar Dubey; Ashok Roy Choudhary

Respondents

Procedural Posture

Contempt Petition (civil); Civil Appeal; Interlocutory Applications (i.a.) / Interlocutory Application and Contempt Proceedings, Referred to Three Judge Bench

Legal Issues

  1. 1 Whether contemnors are entitled to modification of bail terms or transfer from judicial custody to guest house
  2. 2 Whether restraint orders on properties impede compliance and should be partially lifted
  3. 3 Whether sale of properties abroad can be permitted and under what conditions

Ratio Decidendi

Modification of bail terms and transfer of contemnors out of judicial custody is rejected due to their dilatory tactics and background of non-compliance. Restraint orders were partially lifted, allowing sale or mortgage of specified properties at not less than circle rates, to facilitate compliance with payment directions. Sale of overseas properties awaits further documentation/verification.

Court Disposition

Interlocutory applications disposed; partial relief granted on asset sale, no relaxation of custody or bail terms; three-Judge Bench reference.

Orders

  • Prayer for modification of interim bail terms declined.
  • Prayer for shifting contemnors to guest house declined.