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TMI Blog2014 (8) TMI 416X X X X Extracts X X X X X X X X Extracts X X X X ..... ll have to be sought. There is nothing before us to show that Shri Subrata Roy Sahara suffers from any serious medical condition. At any rate, we expect the jail doctors to keep a check on his medical condition and provide necessary medical aid as and when required. The alternative ground urged for the grant of parole also does not stand closer scrutiny. There is, at present, no concrete proposal with Saharas for sale of the properties situate in India or abroad that may call for any negotiation by Shri Subrata Roy Sahara. While it may be true that such negotiations cannot be said to be advisable when properties of such magnitude as in the instant case are sought to be sold, yet it is premature for us to make any arrangement to facilitate any such negotiations either by directing release of Shri Subrata Roy Sahara on parole or otherwise - Decided against Appellant. - I.A. NOS. 8-9 & 10-12 OF 2014, CONTEMPT PETITION (C) NO.412 OF 2012, CIVIL APPEAL NO. 9813 OF 2011, CONTEMPT PETITION (C) NO.260 OF 2013, CIVIL APPEAL NO. 8643 OF 2012 - - - Dated:- 22-7-2014 - T. S. Thakur, Anil R. Dave And A. K. Sikri,JJ. JUDGMENT T. S. Thakur, J. 1. By our order dated 4th June, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re-assurance to the Court that the valuation reports represented the true value of the stakes held by the Saharas in the said three properties. This is evident from the following portion of the order passed by us on 29th May, 2014: Dr. Dhawan submitted, on instructions, that an appropriate communication could subject to the order of this Court be addressed to the Bank of China by the Saharas seeking its approval to the proposed transfer of the stakes held by Saharas in the three properties mentioned above, subject to the repayment of the loan outstanding against those properties. Dr. Dhawan submitted that a copy of the communication addressed to the Bank of China and its response shall be placed on record before this Court along with an affidavit within one week from today. He further submitted that apart from the correspondence that may be exchanged on the subject between Saharas and the Bank of China, the Bank of China will also be requested to confirm the amount that is outstanding towards the loan advanced by it in regard to each one of the three properties mentioned above to give a clear picture to this Courts to the outstanding liability that remains to be liquidated by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by it. The Saharas also seek permission for sale, hypothecation, mortgage/leverage the land owned by them and situate in Versova. 4. Appearing for the applicants, Dr. Rajiv Dhavan, learned senior counsel, argued that the applicants had, pursuant to our order dated 29th May, 2014, addressed a joint letter to the Bank of China on 2nd June, 2014 requesting the Bank of China to confirm the information sought for by this Court. The Bank of China had, on receipt of the said communication, consented to the proposed sale of the stakes held by Saharas in the hotel properties subject to the repayment of the amount outstanding against Saharas. It had also confirmed the loan amounts and the valuation reports as required by the Order passed by this Court. Our attention was, in support of that submission, drawn by the learned counsel to letter dated 3rd June, 2014 sent by the Bank of China to the Saharas conveying the Bank s consent to the sale and direct or indirect disposal by the Saharas Group of its interests in the three hotels subject to the condition that the sale proceeds are sufficient to and the same are applied towards repayment in full of the outstanding principal, interest and ot ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... derstand that you will share a copy of this letter with the Supreme Court of India. 6. It was in the above context, Dr. Dhavan submitted that (a) Bank of China had no objection to the proposed sales/transfer of the stakes held by the Saharas in the three hotel properties and (b) the valuation reports indicating the value of the assets in question were prepared on the instructions of the Bank of China and had been accepted by it for loan security purposes. Dr. Dhavan argued that the valuation reports had been prepared in the ordinary course of business long before the present controversy arose and were truly indicative of the market value of the properties. It was also submitted that the reports were prepared by reputed international valuers after a thorough and analytical application of recognised methods of valuation of a going establishment like a hotel. There was, therefore, no basis for any apprehension that the properties proposed to be sold may be sold at a price lesser than the true market value with a view to defrauding the creditors or siphoning away the sale consideration. Dr. Dhavan argued that while the encashment of FDs and sale of bonds and securities had already ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... crores, out of which ₹ 5,000/- crores has to be in cash while the balance has to be secured by bank guarantee of a nationalised bank furnished in favour of SEBI. It was with a view to enabling the contemnors to comply with the said direction that this Court had by Order dated 4th June, 2014 lifted the embargo placed upon operation of the bank accounts and sale/transfer of immovable assets held by the Saharas qua nine properties referred to in the said order. Saharas have since then deposited an amount of more than ₹ 3,000/- crores with SEBI by encashment of FDs, Bonds and securities. 10. Saharas have also out of the nine properties referred to above sold the property situate in Ahmedabad for a sum of ₹ 4,11,82,55,138/- (Rupees Four Hundred and Eleven Crores Eighty Two Lacs Fifty Five Thousand One Hundred and Thirty Eight only). The remaining eight properties, however, remain to be sold or encumbered. We had in the light of the above asked Dr. Dhavan whether the proposed sale/transfer of the offshore hotel properties was essential when no less than eight other properties apart from Aamby Valley (Pune) remained to be sold or encumbered for raising funds necessary ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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. 12. We may incidentally mention at this stage that Dr. Dhavan had sought a clarification of our Order dated 4th June, 2014 inasmuch as in the para 23 (iii) (b) of the said order, we had stated that the sale of the properties referred to in the order shall not be for an amount lesser than the circle rate for such properties or the estimated value indicated by the Saharas whereas in the operative portion of the said order we had permitted sale at a price that is not lower than the circle rate prescribed for such properties. Having regard, however, to the experience that Saharas have had with the sale of properties in Ahmedabad which fetched more than three times the circle rates prescribed for the s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... owned by Saharas are allowed to be transferred, sold or encumbered subject to the condition that the entire sale consideration received by the Saharas after repayment of the loan outstanding towards the Bank of China is deposited with SEBI towards compliance with the directions contained in the conditional bail order dated 26.3.2014 passed by this Court. The excess amount, if any, shall be deposited by the Saharas in a separate account to await orders from this Court regarding their utilisation. The sale of the offshore properties shall not be at a price lesser than the value estimated by CBRE and JLL for the said properties reduced at the most by 5% of such value. 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 4th June, 2014 shall not be at a price less than the estimated value of the said properties reduced at the most by 5% of such estimate. 4. We had by our order dated 4th June, 2014 requested Shri F.S. Nariman, Senior Advocate, to assist the Court as an Amicus Curiae. We had also permitted Shri Nariman to associate two juniors of his choice to brief him in the matter. Shri N ..... X X X X Extracts X X X X X X X X Extracts X X X X
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