Aamby Valley to go under the hammer as SC rejects Sahara plea for more time

The Supreme Court on Monday directed the Sahara group’s Rs 37,000-crore luxury township Aamby Valley be auctioned as scheduled.

Calling the group "an abuser of process of law", it turned down requests to give a two-month-long extension for paying an instalment, which was due last week. Of the Rs 1,500 crore due for payment on September 7, the group had paid only around Rs 530 crore and offered post-dated cheques payable by up to November 11, for the remaining Rs 970 crore.

"We direct without any hesitation that the auction shall be held as per the direction given by this court and the official liquidator is permitted to carry out the auction as per procedure," a Bench of Chief Justice Dipak Misra, and judges Ranjan Gogoi and A K Sikri said. It appointed the registrar general of the High Court of Bombay as an observer "to remain personally present to oversee the physical auction at the auction venue at Mumbai."

Sahara’s lawyer said, "Royale Partners Investment Fund Limited of Dubai, headed by Sultan Al Ahbabi has entered into an agreement with Sahara to provide loan of $1.6 billion against the security of 26 per cent of the shares of Aamby Valley. They have committed through a mutual agreement and the agreement was submitted in the last hearing of the court (10 August 2017). The same was raised in today’s hearing as well."

The Bench said, "We are of the opinion that grant of further time to the respondent-contemnor and entertaining post-dated cheques which are dated 11 November 2017, would tantamount to travesty of justice and extending unwarranted sympathy to a person who is indubitably an abuser of the process of law."

Earlier, Kapil Sibal, senior counsel appearing for the group, said "would submit with all the vehemence as well as humility at his command," that it was the first case where a contemnor has paid the substantial amount which may go up to Rs 16,000 crore, and though approximately Rs 8,651 crore is due, that should not be held against him.

"The submission on a first blush may look attractive, but the proceeding that has been recorded by this court from time to time will compel one to repel the submission and extinguish the impression gathered on the first blush," the court said.