Securities and Exchange Board of India v. Sahara Real Estate Corporation Private Limited.pdf

8/21/2019 Securities and Exchange Board of India v. Sahara Real Estate Corporation Private Limited.pdf

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REPORTABLE

IN THE SUPREME COURT OF INDIA

CIVIL APPELLATE JURISDICTION

I.A. NOS. 59 – 61 OF 2015AND

I.A. NOS. 62 – 64 OF 2015IN

CONTEMPT PETITION (CIVIL) NOS. 412 AND 41 OF 2012IN

CIVIL APPEAL NOS. 9!1 AND 9! OF 2011AND

CONTEMPT PETITION (CIVIL) NO. 260 OF 201IN

CIVIL APPEAL NO. !64 OF 2012

SECURITIES AND EXCHANGE BOARDOF INDIA (SEBI) & ANR.

.....APPLICANT(S)

VERSUS

SAHARA INDIA REAL ESTATE CORPN.LTD. & ORS.

.....RESPONDENT(S)

J U D " M E N T

A.#. SI#RI$ J.

Before we ader! !o !"e re#$ef% #a$'ed $ !"e%e a#$a!$o%

ad ao*e !"e o*!o'e !"ereof+ we wo*#d #$,e !o rea$!*#a!e+

er- r$ef#-+ !"e /ee%$% for 'o$/ !"e%e a#$a!$o% a% we fee#

!"a! %*" a reo*! of !"e re$o*% ee!% wo*#d 'a,e $! ea%- !o

IA Nos. 59-61 and 62-64 of 2015 Page 1 of 27

Digitally signed byVinod KumarDate: 2015.06.1911:16:00 ISTReason:

Signature Not Verified


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*der%!ad !"e $r*'%!ae% *der w"$" !"e%e a#$a!$o%

"ae ee f$#ed. I! wo*#d a#%o ro$de *% !"e o*r%e of a!$o !"a!

$% !o e !a,e o !"e ra-er% 'ade $ !"e%e a#$a!$o%.

0) T"e 'a$ roeed$/% w$!" w"$" we are oered are !"e

o!e'! e!$!$o% ear$/ No%. 120 of 0320 ad 124 of 0320 $

C$$# Aea# No%. 5624 of 0322 ad 5644 of 0322 a% we## a%

Co!e'! Pe!$!$o No. 073 of 0324 $ C$$# Aea# No. 6714 of

0320. T"e%e o!e'! e!$!$o% f$#ed - !"e Se*r$!$e% ad

E8"a/e Board of Id$a (for %"or!+ 9SEBI9) "ae !"e or$/$ $ !"e

:*d/'e!% !"a! were roo*ed $ !"e $$# aea#%+ *'er%

w"ereof are 'e!$oed aoe. I! %o "aeed !"a! Sa"ara Id$a

Rea# E%!a!e Corora!$o L$'$!ed (SIRECL) ad Sa"ara Ho*%$/

Ie%!'e! Corora!$o L$'$!ed (SHICL) ("ere$af!er referred !o

a% !"e 9Sa"ara%9) $$!ed ad #a$'ed !o "ae o##e!ed deo%$!%

fro' /eera# *#$ w"o+ a##e/ed#-+ $#*ded o#er%+ #ao*rer%+

ar!$%a%+ ea%a!% e!. T"$% $$!a!$o for deo%$! wa% $ !"e for'

of 9O!$oa# F*##- Coer!$#e Dee!*re%9 (OFCD). SEBI fo*d

!"a! offer$/ of %*" OFCD wa% o! #e/a##- er'$%%$#e ad

a%%ed order% d$re!$/ Sa"ara% o! !o offer !"e$r e;*$!- %"are%<

OFCD% or a- o!"er %e*r$!$e% !o !"e *#$ or $$!e %*%r$!$o

$ a- 'aer w"a!%oeer e$!"er d$re!#- or $d$re!#-. T"e H$/"



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Co*r! of Bo'a- d$%'$%%ed !"e$r e!$!$o% ad d$re!ed Sa"ara

Co'a$e%+ $ ar!$*#ar !"e ro'o!er =r. S*ra!a Ro- Sa"ara+

ad D$re!or% =%. Vadaa B"ar/aa+ =r. Ra$ S"a,ar D*e-

ad =r. A%"o, Ro- C"o*d"ar- of Sa"ara% !o :o$!#- ad %eere#-

ref*d !"e a'o*! o##e!ed - Sa"ara% $ !er'% of !"e afore%a$d

$%%*e a#o/ w$!" $!ere%! > 2?@ er a*'. I! $% er!$e! !o

'e!$o !"a! o !"e a%$% of !"e%e d$re!$o% of !"e H$/" Co*r!+

SEBI ordered !"a! ref*d of !"e a'o*! %"a## e 'ade o#-

!"ro*/" de'ad draf!% or a- order%. Cer!a$ o!"er d$re!$o%

were a#%o $%%*ed. A//r$eed - !"e%e order% of SEBI+ Sa"ara%

aroa"ed Se*r$!$e% Ae##a!e Tr$*a# (for %"or!+ 9SAT9). SAT

a#%o de#$ed !o $!erfere w$!" !"e $ew !a,e - SEBI ad

d$re!ed Sa"ara% !o ref*d !"e a'o*! o##e!ed fro' !"e

$e%!or% w$!"$ a er$od of %$8 wee,%. A/a$%! !"e%e order% of

SAT+ C$$# Aea# No%. 5624 of 0322 ad 5644 of 0322 were

referred - Sa"ara% $ !"$% Co*r!+ w"$" were f$a##- d$%o%ed of

- order da!ed 42.36.0320. "$#e %*%!a!$a##- 'a$!a$$/ !"e

order% of SEBI ad SAT+ a 'od$f$a!$o wa% 'ade $ !"o%e order%

w$!" a d$re!$o !o Sa"ara% !o deo%$! !"e a'o*! o##e!ed -

!"e' a#o/ w$!" $!ere%! > 2?@ er a*' w$!" SEBI w$!"$ a

er$od of !"ree 'o!"%. T"e a'o*! w"e deo%$!ed wa% d$re!ed



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!o e $e%!ed $ a a!$oa#$%ed a, !o ear $!ere%!. Sa"ara%

were a#%o d$re!ed !o f*r$%" de!a$#% w$!" %*or!$/ do*'e!% !o

e%!a#$%" w"e!"er !"e- "ad ref*ded a- a'o*! !o !"e $e%!or%

w"o "ad %*%r$ed !"ro*/" !"e Red Herr$/ Pro%e!*% (RHP)

$ ;*e%!$o. SEBI wa% !"e !o e8a'$e !"e orre!e%% of !"e

de!a$#% %o f*r$%"ed. Fa$#*re !o roe !"e ref*d of !"e a'o*! -

Sa"ara% "ad !o /$e r$%e !o a $feree !"a! Sa"ara% "ad o!

ref*ded !"e a'o*! !o !"e rea# ad /e*$e %*%r$er% a%

d$re!ed - SEBI.

4) Afore%a$d d$re!$o% were ad'$!!ed#- o! o'#$ed w$!". I%!ead+

ao!"er aea#+ e$/ Aea# No. 002 of 0320+ wa% referred -

Sa"ara% efore SAT w"$" wa% d$%'$%%ed a% re'a!*re. A/a$%!

!"a! order+ C$$# Aea# No. 6714 of 0320 wa% f$#ed $ !"$% Co*r!

w"$" wa% de$ded o 3?200320. T"e Sa"ara% "ad rod*ed

efore !"e Co*r!+ de'ad draf!% for a !o!a# %*' of₹?203 rore%.

T"$% Co*r! d$re!ed !"e' !o "adoer !"e %a'e !o SEBI. F*r!"er

d$re!$o wa% /$e !o deo%$! !"e a#ae a'o*! of 2+133₹

rore% !o/e!"er w$!" $!ere%! > 2?@ er a*' w$!" SEBI $ !wo

$%!a##'e!%. F$r%! $%!a##'e! of 23+333 rore% wa% !o e₹

deo%$!ed w$!" SEBI - f$r%! wee, of a*ar-+ 0324 ad a#ae

a'o*!+ a#o/ w$!" $!ere%!+ wa% !o e deo%$!ed - f$r%! wee, of



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Fer*ar-+ 0324. Howeer+ !"e a#ae a'o*! or !"e $!ere%!

a-a#e+ a% er !"e $%!a##'e!%+ wa% o! deo%$!ed !"o*/" $! wa%

!o e deo%$!ed - a*ar-


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af!er $#*d$/ !"e $!ere%! w"$" "ad a*'*#a!ed+ a %*' of

44+333 rore% "ad !o e deo%$!ed.₹

1) T"e 'a!!er a'e * for "ear$/ o 07.34.0321 a/a$ ad !"e

!"ree o!e'or% o''$!!ed !o :*d$$a# *%!od- ra-ed for /ra!

of a$# o !"a! da-. T"e Co*r! a%%ed od$!$oa# order of a$# o

!"a! da-. T"e od$!$o wa% !"a! !"e o!e'or% deo%$! 23+333₹

rore% ₹?333 rore% $ a%" ad a#ae of ₹?333 rore% $ !"e

for' of a, /*ara!ee of a a!$oa#$%ed a,+ !o e f*r$%"ed $

fao*r of SEBI. I! wa% %e$f$a##- d$re!ed !"a! *o o'#$ae

w$!" !"e%e od$!$o% !"e o!e'or% wo*#d e re#ea%ed fro' !"e

*%!od-.

?) T$## da!e !"ere $% o f*## o'#$ae of !"e afore%a$d od$!$o for

/ra! of $!er$' a$#+ w$!" !"e re%*#! !"e !"ree o!e'or% are %!$##

$ :*d$$a# *%!od- ad 2? 'o!"% "ae a%%ed !"ere-.

7) e wo*#d #$,e !o o$! o*! a! !"$% %!a/e !"a! - order% da!ed

02.22.0324 a%%ed - !"$% Co*r! !"e a%%e!% of Sa"ara Gro* of

Co'a$e% were froe+ !o e%*re !"a! !"e o!e'or% do o!

fr$!!er awa- !"e%e a%%e!% w$!"o*! o'#-$/ w$!" !"e d$re!$o% of

!"$% Co*r! a%%ed $ !"e C$$# Aea#%. Howeer+ o !"e re;*e%!

'ade - Sa"ara Gro* for #$f!$/ !"e e'ar/o o er!a$



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roer!$e% $ order !o ea#e !"e Sa"ara% !o %e## !"o%e roer!$e%

%o !"a! !"e $!er$' a$# od$!$o% are f*#f$##ed+ o 31.37.0321+ !"$%

Co*r! er'$!!ed ar$o*% Sa"ara Gro* Co'a$e% !o dea#

w$!"


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roer!$e%+ a$# od$!$o% wo*#d "ae ee 'e! #o/ a/o. T"*%+

$%ofar a% !"$% Co*r! $% oered $! /ae a## ee%%ar- %!$'*#*% !o

ea#e !"e a#$a!% !o %e## !"e a%%e!%+ !"a! !oo a! rea%oa#e

'ar,e! r$e. If+ !"e o!e'or% "ae %!$## o! ee a#e !o

a"$ee !"e re;*$red !ar/e!+ $! $% e$!"er ea*%e of !"e rea%o !"a!

!"e effor!% 'ade - !"e o!e'or% a% we## a% o!"er off$er% of

Sa"ara /ro* $ ra$%$/ 'oe- fro' !"e %a#e


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a, "a% a/reed !o f*r$%" !"e re;*$red a, /*ara!ee. T"e

for'a! of !"e a, /*ara!ee $% a#%o rod*ed a! !"e !$'e of

"ear$/ for !"e aroa# of !"e Co*r!+ %o !"a! !"e /*ara!ee $%

/$e $ !"e %a$d for'a!+ $f aroed.

6) A%%e!% of ar$o*% o'a$e% of Sa"ara /ro* "ae ee froe.

Aord$/ !o !"e a#$a!%+ - rea%o of !"e %a$d freee !"e

f$a$a# ad #$;*$d$!- o%$!$o of ar$o*% Sa"ara /ro* o'a$e%

"a% ee ader%e#- affe!ed ad $! "a% a#%o re%*#!ed $!o

'o*!$/ #$a$#$!$e% $ !"e for' of %!a!*!or- #$a$#$!$e%+ *a$d %a#ar-

ad wa/e%+ o*!%!ad$/ ad oerd*e a'o*!% a-a#e !o a,%+

e!. Bea*%e of !"$% rea%o+ IA No%. ?572 of 032? are f$#ed

ra-$/ for !"e fo##ow$/ re#$ef%

($) a##ow !"e Sa"ara Gro* Co'a$e% !o 'ee!!"e$r re%e!$e %!a!*!or- ad o!"er #$a$#$!$e% a%e*'era!ed $ !"$% a#$a!$o *der %*" !er'%ad od$!$o a% !"$% Co*r! 'a- dee' roer a#o/w$!" !"e o'#$ae of !"e order da!ed 07.34.0321a%%ed - !"$% Ho9#e Co*r!

($$) er'$! !"e Sa"ara Gro* Co'a$e% !o *!$#$e!"e a#ae+ $f a-+ of !"e roeed% o!a$ed fro'!"e %a#e


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!"$% Ho9#e Co*r!+ $ !"e $r*'%!ae% of !"ea%e.J

5) I%ofar a% er'$%%$o !o %e## er!a$ roer!$e% of Sa"ara /ro* $%

oered+ $! wa% %*:e! !o er!a$ od$!$o% a% $d$a!ed aoe

ad oe of !"e od$!$o% wa% !"a! %a#e '*%! o! e for a r$e

#ower !"a ?@ of !"e e%!$'a!ed a#*e for %*" a roer!-. T"e

a#$a!% %!a!e !"a! $ re%e! of oe %*" roer!- a! Gora,"*r+

U!!ar Prade%"+ !"e- "ae ee a#e !o f$d a *r"a%er w"o $%

read- !o %!e $!o !"e %"oe% of !"e a#$a!% for dee#o'e!<

'a$!eae of !"e %a$d roer!-. =OU w$!" !"e %a$d ar!- "a%

a#read- ee e!ered $!o+ w"$" $% #aed o reord. I! $% o$!ed

o*!+ "oweer+ !"a! !"e r$e e$/ offered $% ₹ 71 rore%. T"e

r$e offered $% #ower !"a ?@ of !"e e%!$'a!ed a#*e. Howeer+

aord$/ !o !"e a#$a!%+ d*e !o !"e dere%%ed rea# e%!a!e

'ar,e!+ !"e re%e! e%!$'a!ed 'ar,e! a#*e of !"e %a$d roer!- $%

₹?4.3 rore%+ a% er !"e a#*a!$o reor! ree$ed. T"$% a#*e $%

a#*#a!ed o !"e a%$% of $r#e ra!e of !"e ro:e! #ad. O !"a!

a%$%+ IA No%. 7071 of 032? are f$#ed w$!" !"e fo##ow$/ ra-er%

($) A##ow !"e a#$a!% !o e!er $!o !"e Def$$!$e A/ree'e! for !"e roer!- %$!*a!ed a! Gora,"*rad

($$) a%% %*" f*r!"er or o!"er order% a% !"$% Ho9#eCo*r! 'a- dee' f$! ad roer $ !"e fa!% ad



11/27

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$r*'%!ae% of !"e re%e! a%e.J

23) I%ofar a% !"e afore%a$d ra-er ($) $ IA No%. 7071 of 032? $%

oered+ "a$/ re/ard !o !"e rea%o% 'e!$oed $ ara% 1

ad ? of !"e a#$a!$o+ w"$" are %!a!ed $ r$ef aoe+ ad !"e

fa! !"a! !"e =OU $% e!ered for a area of *dee#oed #ad of

1?.2 are% o*! of !"e !o!a# #ad area of 217 are%+ o*#ed w$!"

!"e fa! !"a! !"ere $% %#*' $ !"e rea# e%!a!e 'ar,e!+ we a##ow !"e

a#$a!% !o e!er $!o Def$$!$e A/ree'e!+ 'a,$/ $! #ear !"a!

!"e e!$re a'o*! fro' !"e afore%a$d dea# %"a## e deo%$!ed $

SEBISa"ara Ref*d Ao*! af!er ad:*%!$/ !ra%a!$o o%! ad

!a8e%.

22) I%ofar a% ra-er% ($) ad ($$) o!a$ed $ IA No%. ?572 of 032?

are oered+ we are of !"e o$$o !"a! !"e %!a/e for 'a,$/

%*" ra-er% "a% o! r$eed a% -e!. T"e Sa"ara /ro*

o'a$e% wa! !o 'ee! !"e$r %!a!*!or- ad o!"er #$a$#$!$e% fro'

!"e %*r#*% !"a! wo*#d e aa$#a#e af!er o'#-$/ w$!" order

da!ed 07.34.0321. A% %oo a% !"ere $% a o'#$ae w$!" !"e %a$d

order+ !"$% Co*r! %"a## o%$der a! !"a! %!a/e !"e aa$#a$#$!- of !"e

%*r#*% f*d% a#o/ w$!" o!"er fa!or% ad !"e a%% aror$a!e

order% o !"e%e a#$a!$o%. I! $% ee%%ar- !o 'e!$o !"a! ee



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af!er order da!ed 07.34.0321 $% o'#$ed w$!"+ !"ere $% a "*/e

def$$! $ !"e for' of a#ae a'o*! !"a! wo*#d %!$## e re;*$red !o

e deo%$!ed - !"e a#$a!%


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T"$% /*ara!ee %"a## re'a$ $ fore $$!$a##- for aer$od of %$8 'o!"% ad %"a## e e8!eded for f*r!"er er$od% of %$8 'o!"% a! !"e !$'e+ *!$# SEBI

o!"erw$%e d$re!% *r%*a! !o !"e order of Ho9#eS*re'e Co*r!.J

24) SEBI "a% /$e $!% od !o !"e afore%a$d for'a!. L$,ew$%e+ =r.

S"e,"ar Na"ade+ #eared amicus ao$!ed - !"$% Co*r!+ "a%

'ade a %!a!e'e! !"a! !"e /*ara!ee !o e f*r$%"ed $ !"e

afore%a$d for'a! 'a- e ae!ed. A! !"e %a'e !$'e+ =r. Ar$d

Da!ar+ #eared %e$or o*%e# aear$/ for SEBI+ a% we## a% =r.

Na"ade were er- e'"a!$ $ o$!$/ o*! !"a! !"$% Co*r! %"o*#d

$d$a!e $ $!% order a% !o w"a! %"o*#d e !"e !r$//er o$! for

ea%"$/ !"e a, /*ara!ee. I o!"er word%+ $! wa% !"e$r

%*'$%%$o !"a! $%ofar a% a#ae a'o*! a-a#e - !"e

a#$a!%


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%!a/e. T"e- o$!ed o*! !"a! #a%! ara of !"e a, /*ara!ee

a!e/or$a##- 'e!$o% !"a! !"e /*ara!ee $% !o re'a$ $ fore

'until SEBI otherwise directs, pursuant to the orders of the Hon'ble

Court' ad+ !"*%+ !"$% Co*r! a d$re! a! a- %!a/e a% a! w"a!

o$! of !$'e !"e a, /*ara!ee $% !o e ea%"ed. T"e$r

ar/*'e! wa% !"a! !"e a#$a!% "ae ref*ded a#'o%! ₹27+333

rore% !o !"e $e%!or% ad o#*'$o*% reord of do*'e!% $

%*or! !"ereof "a% a#read- ee "aded oer !o SEBI. I! $% for

!"e SEBI !o er$f- !"e %a'e ad $for' a% !o w"a! wo*#d e !"e

a#ae a'o*! a-a#e af!er ad:*%!'e! of !"e a'o*!% a#read-

a$d !o !"e $e%!or% ad !o !"e e8!e! $! $% fo*d !o e /e*$e+

!"e %a'e e ref*ded. T"e- %*'$!!ed !"a! $! $% SEBI w"$" $% o!

f*#f$##$/ $!% ar! of o#$/a!$o - /o$/ $!o !"e er$f$a!$o of !"o%e

do*'e!%+ for w"$" a#$a!% ao! e #a'ed or re:*d$ed.

2?) S$e !"$% a%e! wa% "o!#- dea!ed a! !"e Bar+ we "ae /oe $!o

!"e %a'e $ %o'e de!" ad de!a$#. e f$d !"a! !"e $%%*e of

ref*d of ₹2+333 rore% aro8$'a!e#- !o !"e deo%$!or% "a%

ee ra,ed * - !"e o!e'or%


15/27

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0321+ !$!#ed Subrata Roy Sahara . Unon of Inda ! "rs.2)+ !"$%

er- #ea of e8e'!$/ !"e a#$a!% fro' deo%$!$/ !"e a'o*!

a#read- redee'ed - !"e' wa% o%$dered a! #e/!" ad

re:e!ed. I !"e %a$d :*d/'e!+ !"e Co*r! !oo, o!e of ad

e8re%%ed $!% o$$o o !"$% a%e! a! ar$o*% #ae%. I ara ??

of !"e :*d/'e!+ !"e Co*r! o%ered !"a! %*" a #ea wa% o!

ae!ed ee ear#$er - a !"ree *d/e Be" w"$#e d$%o%$/ of

C$$# Aea# No. 6714 of 0320 $de order da!ed 3?.20.0320+ $ !"e

fo##ow$/ 'aer

D*r$/ !"e ede- of !"e o!e'! roeed$/%+we a#%o de$ded !o de!er'$e !"e era$!- of !"erede'!$o !"eor-+ ro:e!ed - !"e !wo

o'a$e%. A% a 'a!!er of #aw+ $! wa% o! oe !o!"e !wo o'a$e% !o ra$%e !"e afore%a$d defee.T"$% $% ea*%e+ e8a!#- !"e %a'e defee wa%ra$%ed - !"e !wo o'a$e%+ w"e !"e- "adaroa"ed !"$% Co*r! - f$#$/ C$$# Aea# No.6714 of 0320 (ad r$! Pe!$!$o (C$$#) No. ?0 of 0320). I !"e afore%a$d C$$# Aea#+ $! wa%%*'$!!ed o e"a#f of !"e !wo o'a$e% !"a! !"e-%"o*#d e e8e'!ed fro' deo%$!$/ !"e a'o*!a#read- redee'ed - !"e'. T"e aoe o!e!$o

adaed - !"e !wo o'a$e% wa% o! ae!ed+- !"e !"ree *d/e D$$%$o Be"+ w"e $!d$%o%ed of C$$# Aea# No. 6714 of 0320 (adr$! Pe!$!$o (C$$#) No. ?0 of 0320) - order da!ed?.20.0320. I! $%+ !"erefore+ aare! !"a! !"e $%!a!defee of "a$/ a#read- redee'ed 'o%! of !"eOFCD9% wa% o! oe !o !"e !wo o'a$e% (adee !"e o!e'or%). Me!+ %o a% !o e%*re !"a! o$:*%!$e wa% doe+ we er'$!!ed !"e !woo'a$e% !o #ae 'a!er$a# o !"e reord of !"$%

a%e !o %*%!a!$!e !"e fa!*' of rede'!$o.

1 (0321) 6 SCC 13



16/27

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(e'"a%$% %*#$ed)J

27) T"e Co*r!+ !"*%+ we! $!o !"$% $%%*e a/a$ er'$!!$/ !"e !wo

o'a$e% !o #ae re;*$%$!e 'a!er$a# o reord !o %*%!a!$a!e

!"e fa!*' of rede'!$o ad !oo, $!o o%$dera!$o w"a!eer

'a!er$a# wa% #aed o reord. Howeer+ $! ref*%ed !o ae! !"e

#ea of !"e !wo o'a$e%+ w"$" $% #ear fro' !"e fo##ow$/

d$%*%%$o $ ara% 67 ad 236 of !"e %a$d :*d/'e!

"e a%,ed "ow d$%*r%e'e!% were 'ade !o!"e $e%!or%+ !"e re%o%e wa% !"a! 5?@ of !"ea-'e!% 'ade !o !"e $e%!or% were a#%o 'ade- wa- of a%"+ !"e #eared Se$or Co*%e#rere%e!$/ !"e Co!e'or% ($#*d$/ !"ee!$!$oer "ere$) $$!ed o*r a!!e!$o !o !"e oo,%of ao*!% (o#- /eera# #ed/er e!r$e%) !ode'o%!ra!e roof of !"e !ra%a!$o% *der referee. De!a$#% $ !"$% e"a#f "ae eereorded - *% *der "ead$/ IX A few word%ao*! !"e defee of rede'!$o of OFCD% offered- !"e !wo Co'a$e%J. T"e aoe e8#aa!$o'a- %ee' !o e ae!a#e !o !"e o!e'or%+ *!o*r $ew $% ;*$!e !"e oer%e. I! $% o! o%%$#e for *% !o ae! !"a! !"e f*d% a'o*!$/ !o!"o*%ad% of rore% were !ra%a!ed - wa- of

a%"+ we wo*#d !"erefore+ o !"e fae of $!+ re:e!!"e aoe e8#aa!$o !edered o e"a#f of !"e!wo Co'a$e%.J

2) T"e Co*r! f*r!"er fo*d !"a! $ order da!ed 3?.20.0320 $ C$$#

Aea# No. 6714 of 0320+ a#ae a'o*! of ₹2+133 rore%+

!o/e!"er w$!" $!ere%! > 2?@ er a*'+ wa% %!$## a-a#e ee

af!er !"e deo%$! of ₹ ?+203 rore%. I! f*r!"er 'e!$oed !"a! !"$%



17/27

17

f$/*re "a% %we##ed * !o ₹ 47+736 rore%. T"ereaf!er+ !"e o%$!$o

wa% o#*ded $ ara 2?1 a% *der

T"erefore+ $ewed fro' a- a/#e+ !"ere $% o%*%!ae $ !"e o!e!$o adaed o e"a#f of !"e !wo o'a$e% !"a! !"e 'oe-% a-a#e !o !"e$e%!or% "ad ee ref*ded !o !"e'. Aord$/#-+!"ere $% o 'er$! $ !"e ra-er+ !"a! w"$#e 'a,$/a-'e!% $ o'#$ae w$!" !"$% Co*r!9% order%da!ed 42.36.0320 ad 3?.20.0320+ !"e !woo'a$e% were e!$!#ed !o 'a,e ded*!$o% of R%.

2+114 rore% ($%ofar a% SIRECL $% oered)ad R%.?+110 rore% ($%ofar a% SHICL $%oered).J

26) T"e afore%a$d d$%*%%$o #$"$/#- %"ow%+ w$!"o*! a- a$# of

do*!+ !"a! !"e o!e'or%


18/27

18

a!*a##- ee 'ade+ !"e !wo Co'a$e% w$## eref*ded !"e a'o*!%+ e;*a# !o !"e rede'!$o%fo*d !o "ae ee /e*$e#- 'ade.J

03) No do*!+ !"$% '*" %oe $% %!$## #ef! for Sa"ara /ro*. Fa!

re'a$% !"a! a def$$!e o*r%e of a!$o !"a! $% !o e "ar!ered $%

a#%o #a$d dow+ a'e#-+ $ !"e f$r%! $%!ae $! $% o#$/a!or- o !"e

ar! of !"e o!e'or%


19/27

19

o! o#- !o deo%$! !"e a#ae a'o*! $ a !$'e o*d %"ed*#e

*! a#%o !"e 'aer o w"$" !"e- roo%e !o '*%!er !"e %a$d

a'o*!. T"$% ao! /o o ed#e%%#-.

02) e are o%$o*% of !"e fa! !"a! !"ree er%o% are *der

of$e'e! for !"e #a%! f$f!ee 'o!"%. T"e $r*'%!ae% *der

w"$" order% da!ed 31.34.0321 were a%%ed !a,$/ !"e%e er%o%

$!o *%!od- ad %ed$/ !"e' !o :a$# are we## ,ow. T"$% o*r!

wa% $r!*a##- o'e##ed !o do %o+ /o$/ - !"e %!*or a!!$!*de of

!"e o!e'or% $ !a,$/ !"e order% da!ed 42.36.0320 ad

3?.20.0320 for /ra!ed+ a% $f !"o%e order% were o#- o aer%

ad were o! 'ea! !o e o'#$ed w$!". So 'a- oor!*$!$e%

were /$e+ %"ow$/ a## !"a! #e$e- w"$" o*#d e e8!eded+ !o

ea#e !"e o!e'or% !o o'#- w$!" !"o%e d$re!$o%. I! $% o#-

w"e !"e Co*r! fe#! !"a! *#e%% %o'e dra%!$ a!$o $% !a,e !"ere

w$## e o de%$red effe!+ !"a! !"$% e8!re'e %!e wa% !a,e.

Howeer+ !"$% %!e wa% !a,e $ /ood fa$!" !o *"o#d !"e r*#e of

#aw ad !o e%*re !"a! d$/$!- of !"$% Co*r! $% 'a$!a$ed ad

!"ere $% fa$!"f*# o'#$ae w$!" $!% d$re!$o%. T"e o!e'or%+

$%!ead of !a,$/ %!e% !o fo##ow ad f*#f$# !"e d$re!$o%+ %!ar!ed

'a,$/ "*e ad r-. S!$##+ $ !"e a#$a!$o f$#ed $''ed$a!e#-

!"ereaf!er for re#ea%e+ !"$% Co*r! %"owed de%$red o'a%%$o ad



20/27

20

e'a!"- - a%%$/ order% da!ed 07.34.0321+ !"ere- a$/ a

wa- for /ra! of $!er$' a$#. I! wa%+ "oweer+ w$!" a #e/$!$'a!e

od$!$o !"a! o*! of a#'o%! ₹4+333 rore% !"a! "ad eo'e d*e

- !"a! !$'e+ !"e o!e'or% deo%$! a! #ea%! ₹23+333 rore%+ !"a!

!oo w$!" re#a8ed ro$%$o of deo%$! of ?3@ !"ereof - 'ea% of

a, /*ara!ee o#-. T"ere wa% a /e*$e "oe !"a! for !"e %a,e

of a!!a$$/ !"e$r ow freedo'+ !"e o!e'or% %"a## a! #ea%!

o'#- w$!" !"$% d$re!$o $''ed$a!e#-. S$e !"e+ !"o*/" !"ere

"ae ee a!!e'!% o !"e ar! of !"e o!e'or% !o do !"e

eedf*#+ *! a## $ a$. T"$% $% o!w$!"%!ad$/ !"e fa! !"a!

$%ofar a% !"$% Co*r! $% oered+ $! "a% %"ow ad e8!eded a##

%*or! $ !"e for' of /$$/ de%$red fa$#$!$e% $ :a$# #$f!$/ !"e

a!!a"'e!% $ re%e! of !"o%e roer!$e% "o%e - !"e

a#$a!% !"e'%e#e%+ for %a#e< e*'rae% e!. a##ow$/

!"e%e a#$a!% !o ae! !"e offer of #e%%er a'o*! !"a !"e

oo, a#*e of a ar!$*#ar a%%e!+ /o$/ - !"e fa! !"a! !"e%e were

a,$ !o d$%!re%% %a#e% $ a dere%%ed rea# e%!a!e 'ar,e!. =a- e

!"e a#$a!% ow %ee !"e #$/"! a! !"e ed of !"e !*e# a% $! $%

ro:e!ed !"a! !"e Sa"ara o'a$e% "a% f$a##- fo*d !"e *-er%

for er!a$ a%%e!% ad


21/27

21

roer!$e% ad !"a! wo*#d r$d/e !"e /a $%ofar a% od$!$o% of

$!er$' a$# are oered. Howeer+ a% 'e!$oed aoe+ !"e

'a!!er doe% o! re%! w$!" !"e deo%$! of ₹?+333 rore% ad ₹?+333

rore% - wa- of a, /*ara!ee. To!a# #$a$#$!- "a% %we##ed !o

'ore !"a ₹47+333 rore%. T"e afore%a$d deo%$! of ₹23+333

rore% $% o#- a od$!$o of $!er$' a$#. I! $% !"e o*de d*!- of

!"$% Co*r! !o e%*re !"a! a#ae a'o*! $% a#%o deo%$!ed - !"e

a#$a!%.

00) T"$% Co*r! fee#% oered w$!" !"e fa! !"a! !"ree er%o% are

der$ed of !"e$r #$er!- for !"e #a%! f$f!ee 'o!"% ad !"$%

%$!*a!$o $% ;*$!e oero*% !o !"e'. O !"e o!"er "ad+ *#$

$!ere%! a% we## a% *#$ /ood de'ad% !"a! !"e !wo Sa"ara

Co'a$e%+ w"$" "ad o##e!ed w"o$/ a'o*! of 'ore !"a

00₹ +333 rore% fro' !"e *#$ $ a $##e/a# ad *a*!"or$%ed

'aer+ are 'ade ao*!a#e for !"e %a'e $ !"e 'aer $! $%

d$re!ed $de order% da!ed 42.36.0320 ad 3?.20.0320. B- a-

-ard%!$,+ !"$% $% a "*/e #$a$#$!-+ w"$" !"e o!e'or% are o*d

!o d$%"ar/e - deo%$!$/ !"e %a'e w$!" SEBI. I! $%+ !"*%+ a

*reede!ed %$!*a!$o of er%oa# #$er!- of !"e !"ree a#$a!%

o !"e oe "ad vis a vis 'a:e%!- of #aw ad e%*r$/ #ar/er

*#$ /ood+ o !"e o!"er "ad. I! $% !"$% %e%e of :*%!$e+ $ a



22/27

22

*reede!ed ,$d of %$!*a!$o+ !"a! "a% o'e##ed !"e Co*r! !o

!a,e %*" a e8!re'e %!e. I! $% !"$% #e/a# rea#$%' w"$" "a%

o'e##ed !"e Co*r! !o ado! a aroa" w"$" %o*d% 'ore

ra/'a!$. I! $% do$/ w"a! o'e% a!*ra##-J aroa" !o !"e

ro#e' a! "ad+ w"$" re;*$red %*" a dra%!$ %!e+ /o$/ - !"e

e8er$ee of !"$% a%e+ /$$/ r$%e !o 9Ref#e!$o9 !"a! ro$ded

9Uder%!ad$/9. T"$% a%e $% a *r$/ e8a'#e w"ere !"e !r*e

d$!a!e of :*%!$e $% d$ff$*#! !o d$%er+ ad !"e #aw eeded !o

o'e dow o !"e %$de of ra!$a# oe$ee. e 'a- orrow

!"e :*r$%r*de!$a# !"eor- roo*ded - Roa#d Dwor,$+ a#e$! $

%o'ew"a! d$ffere! o!e8!+ $. !"e oe!$oa# :*r$%r*de!$a#

w$%do'J w"$" "o#d% !"a! $ er!a$ a%e% of a ar!$*#ar#-

o'#e8 or oe# "ara!er !"e #aw doe% o! ro$de a def$$!e

a%wer. I de-$/ !"a! :*d/e% $ "ard a%e% "ae a d$%re!$o !o

de!er'$e w"a! !"e #aw $%+ Dwor,$ "a% $%!ead ar/*ed for !"e

:*d$$a# *%e of *#$ %!adard% or r$$#e% $ a wa- !"a! $%

aa#e of ro$d$/ !"e r$/"! #e/a# a%wer. T"e roe%% of

rea"$/ a r$/"! a%wer $ "ard a%e% o$o*%#- d$ffer% fro' !"e

roe%% of rea"$/ !"e #e/a# a%wer $ ea%- a%e%. Af!er a##+ !"e

aowed o:e!$e of r*#e of #aw $% a#%o !o e%*re !"a! !"e order% of

!"$% Co*r! are re%e!ed ad oe-ed. T"erefore+ $!% a #a%%$



23/27

23

a%e w"ere !"e aroa" ado!ed $% $f#*eed - !"e ee%%$!-

of 'a,$/ !"e #aw wor,J. T"erefore+ !"e order% a%%ed 'a- o!

e %!r$!#- o%!r*ed a% ar$%$/ o*! of o!e'! :*r$%d$!$o+ *! $

e8er$%e of $"ere! :*r$%d$!$o e%!ed $ !"$% Co*r! !o do

o'#e!e :*%!$e $ !"e 'a!!er ad !o e%*re !"a! !"e a#$a!%

reder f*## o'#$ae of $!% order%. I!9% !"e *reede!ed

%$!*a!$o w"$" "a% #ed !o a%%$/ of *reede!ed+ *!

:*%!$f$a#e+ order%.

04) T"$% Co*r! $% o! ower#e%% a% $! a a#wa-% d$re! %e##$/ !"e

roer!$e% of !"e Sa"ara Co'a$e% !o e%*re reoer- of !"e

afore%a$d a'o*! a% !"e a#*e of !"o%e roer!$e% $% %!a!ed !o e

'*" "$/"er. Howeer+ $! $% o! doe %o far *r%*a! !o !"e

w$%"e% of !"e a#$a!% w"o "ae #eaded a/a$%! !"e %a#e of

!"e%e roer!$e% - !"e Co*r! w$!" reea!ed a%%*rae% !"a! !"e%e

o'a$e% wo*#d e !a,$/ ee%%ar- %!e% for /eera!$/ !"e

de%$red f$ae% ad !"e Co*r! "a% ae!ed !"e$r re;*e%! ad

/$e !"e' oor!*$!$e% ad "ae% !o do %o.

01) S"r$ Da!ar+ Se$or Co*%e# for SEBI ad S"r$ Na"ade+ A'$*%

C*r$ae o!eded ad $ o*r $ew r$/"!#- %o+ !"a! $f !"e for'a! of

!"e a, /*ara!ee $% ae!ed+ !"$% Co*r! o*/"! !o $d$a!e !"e



24/27

24

$r*'%!ae% $ w"$" !"e SEBI a %ee, ea%"'e! of !"e

%a$d /*ara!ee. I! wa% ar/*ed !"a! !"e Ba, G*ara!ee a%

f*r$%"ed - !"e o!e'or% d$d o! $d$a!e a !r$//er o$! for

ea%"'e! w"$" o*/"! !o e %*$!a#- 'e!$oed ad e!ered

e$!"er $ !"e /*ara!ee or $ !"e order of !"$% Co*r!. I! wa% f*r!"er

ar/*ed !"a! re#ea%e of !"e o!e'or% fro' !"e *%!od- ee

af!er deo%$! of a %*' of R%.?333 rore% ad a a, /*ara!ee of

R%.?333 rore% *r%*a! !o !"e order of !"$% Co*r! wa% 'ea! o#-

!o ea#e !"e' !o deo%$! !"e a#ae a'o*!. I! wa% %*'$!!ed

!"a! $ a%e !"e o!e'or% o'#- w$!" !"e od$!$o% for re#ea%e

fro' *%!od-+ !"e e8! !"$/ !"e- '*%! do $% !o o'#- w$!" !"e

d$re!$o% re/ard$/ deo%$! of !"e a#ae a'o*!. T"$% Co*r!+ $!

wa% ar/*ed+ %"o*#d o! o#- d$re! !"e deo%$! of a#ae a'o*!

*! ro$de for !"e o%e;*ee% $ defa*#! of %*" deo%$!%.

T"e a, /*ara!ee for'a! doe% o! ro$de for a !r$//er

o$! for $!% ea%"'e!. F*r$%"$/ !"e a, /*ara!ee w$!"o*!

%!$*#a!$/ !"e %$!*a!$o% $ w"$" !"e /*ara!ee %"a## eo'e

ea%"a#e+ w$## e 'ea$/#e%%. T"e Ba, /*ara!ee $% a!*a##-

'ea! !o e%*re !"a! !"e e!$re a'o*! $% deo%$!ed - !"e

o!e'or% oe !"e- are re#ea%ed fro' *%!od-. T"a! $%

ea*%e !"e #$a$#$!- !o deo%$! !"e a'o*! doe% o! /e!



25/27

25

o#$!era!ed - f*r$%"$/ !"e a, /*ara!ee w"$" $% $!eded !o

/ra! re#ea%e of !"e o!e'or% fro' *%!od- !o ea#e !"e' !o

o'#- w$!" !"e order% a%%ed - !"$% Co*r!. e "ae $ !"a!

$ew e8a'$ed %eera# o!$o% !"a! 'a- ro$de for a !r$//er o$!

for ea%"'e!. e are of !"e $ew !"a! %$e 'o%! of !"e

roer!$e% owed - Sa"ara /ro* re'a$ froe - !"e order of

!"$% Co*r!+ !"e o!e'or% re;*$re !$'e !o ea#e !"e' !o deo%$!

!"e a#ae o*!%!ad$/. I a%e !"e a, /*ara!ee $% 'ade

ea%"a#e o defa*#!+ !"e !r$//er o$! for ea%"'e! wo*#d e

!"e defa*#! - !"e o!e'or% $ deo%$!$/ !"e a#ae a'o*! $

!er'% of !"e d$re!$o% !"a! we roo%e !o $%%*e. I! $% $ !"a! %$r$!

!"a! we ae! !"e a, /*ara!ee for'a! f*r$%"ed - !"e

o!e'or% ad /ra! !o !"e' !$'e !o deo%$! !"e a#ae a'o*!

!"a! re'a$% !o e deo%$!ed %*:e! !o !"e fo##ow$/ od$!$o%

(2) ee$/ $ $ew !"e !o!a# #$a$#$!- w"$" aord$/ !o SEBI+

"a% r$%e !o R%.47+333 rore% (aro8$'a!e#-)+ !"e o!e'or%

%"a## deo%$! !"e a#ae o*!%!ad$/ a'o*! w$!"$ a er$od of

26 'o!"% o''e$/ fro' !"e da!e of !"e$r re#ea%e fro'

*%!od- $ $e $%!a##'e!%. F$r%! e$/"! $%!a##'e!% %"a## e of

R%.4+333 rore% a-a#e eer- !wo 'o!"% fro' !"e da!e of !"e$r



26/27

26

re#ea%e fro' *%!od- ad #a%! $%!a##'e! %"a## e of !"e

re'a$$/ a'o*!.

(0) I !"e ee! of !"e defa*#! $ a-'e! of !wo $%!a#'e!%

(o! ee%%ar$#- o%e*!$e) !"e a, /*ara!ee f*r$%"ed -

!"e o!e'or% *r%*a! !o !"e order of !"$% Co*r! %"a## e

ea%"ed - SEBI ad !"e a'o*! %o ree$ed o*!ed !oward%

ar! o'#$ae w$!" !"e ear#$er d$re!$o% /$e - !"$% Co*r!.

(4) T"e a, /*ara!ee %"a## a#%o e ea%"a#e $ !"e ee!

of fa$#*re of !"e o!e'or% !o deo%$! !"e f*## a'o*! o*!%!ad$/

a/a$%! !"e' w$!"$ a er$od of 26 'o!"% o''e$/ fro' !"e

da!e of !"e$r re#ea%e.

(1) I !"e ee! of fa$#*re of !"e o!e'or% !o deo%$! !"ree

$%!a#'e!% (o! ee%%ar$#- o%e*!$e)+ !"e o!e'or% %"a##

%*rreder a, !o *%!od- ad $ a%e !"e- fa$# !o do %o+ !"e-

%"a## e !a,e $!o *%!od- ad o''$!!ed !o :a$#.

(?) S$e o#- %o'e of !"e roer!$e% "ae ee re#ea%ed -

!"$% Co*r! for %a#e - !"e o!e'or%+ !"e o!e'or% %"a## e

free !o a#- for er'$%%$o !o %e## a- f*r!"er roer!- w$!"$ 2?

da-% fro' !"e$r re#ea%e $ order !o ea#e !"e' !o ra$%e f*d% for

deo%$! of !"e re;*$red a'o*! $ !er'% of !"e order of !"$% Co*r!.



27/27

27

(7) ee$/ $ $ew !"e fa! !"a! a #ar/e a'o*! re'a$% !o e

deo%$!ed - !"e o!e'or%+ we d$re! !"e o!e'or% !o

deo%$! !"e$r a%%or!% $ !"$% Co*r! w$!"$ 2? da-% fro' !"e da!e

of !"$% order or efore !"e$r re#ea%e+ w"$"eer $% ear#$er. T"e-

%"a## o! #eae !"e o*!r- w$!"o*! r$or er'$%%$o of !"$% Co*r!.

I%ofar a% !"e$r 'oe'e!% w$!"$ !"e o*!r- are oered+

!"e- %"a## ,ee o#$e %!a!$o T$#a, =ar/+ New De#"$ $for'ed ad

*da!ed ao*! !"e$r w"ereao*!% eer- for!$/"!.

0?) T"e I!er#o*!or- A#$a!$o% %!ad d$%o%ed of o !"e afore%a$d

!er'%.

.............................................J.(T.S. THA#UR)

.............................................J.(ANIL R. DAVE)

.............................................J.(A.#. SI#RI)

NE% DELHI&JUNE 19$ 2015.

Documents

Securities and Exchange Board of India v. Sahara Real Estate Corporation Private Limited.pdf