Bluntly refusing Sahara’s repeated prayers for “indulgence,” the Supreme Court on Wednesday declined the group’s plea to extend the deadline for honouring a cheque for ₹552 crore even as it accepted the terms, conditions and draft proclamation for auction of the prized Aamby Valley property.
A Bench of Justices Dipak Misra, Ranjan Gogoi and A.K. Sikri expressed its displeasure when Sahara’s counsel and senior advocate Kapil Sibal sought an extension from July 15 to August 15 to honour the cheque for ₹522 crore.
“You have admittedly an approximate ₹9000 crore in dues left. If you are going to pay in such ₹ 400 and ₹ 500 crore instalments, the full repayment will take a lifetime. Better to sell the Aamby Valley property. It is worth over ₹37000 crore,” Justice Gogoi told Mr. Sibal.
Order to SEBI
The court then ordered SEBI to produce the cheque in the bank for encashment on July 15 itself. The court recorded in the order that Sahara chief Subrata Roy, present in the courtroom, would face “appropriate consequences” if the cheque is dishonoured.
The court said further action on the proposed auction of the Aamby Valley property hinged on whether the ₹ 552 crore cheque is honoured or not on July 15.
“If it is honoured, we shall direct you [Sahara] to deposit a bigger amount so that some of the balance of the approximate ₹9000 crore dues is realised,” Justice Gogoi observed.
‘Promise kept’
Mr. Sibal, who was flanked by senior advocate Mukul Rohatgi, pleaded that the court was “unfair.” Mr. Sibal said Sahara had kept its promise to deposit ₹1500.4 crore by June 15 and was only seeking a month or two months’ time to honour the ₹ 552 crore cheque.
“At the end of the day, if nothing works, Aamby Valley property can be sold. But what is the harm in waiting for a month?” Mr. Rohatgi asked the court.
“Our judgment says money has to be paid first. You should have paid the money?” Justice Gogoi responded.
“Which businessman can have ₹23,000 crore with him? My business will be destroyed if my assets are sold to vultures for pittance. What is my crime? I have paid ₹3600 crore in the last year itself,” Mr. Sibal argued.
“Extend the deadline from July 15 and we will then give Your Lordships a reasonable road map for the full repayment,” Mr. Rohatgi said.
“The larger amount that you have to pay after honouring the ₹552 crore on July 15 is the road map,” Justice Gogoi replied.
Justice Misra said the court’s insistence that Sahara meet the July 15 deadline was not “unfair in law.”
The court posted the next hearing for July 18.
