Supreme Court turns an auction room

A competitive bidding took place before a Bench headed by Justice T S Thakur during the hearing on the issue related to arranging the money for the release of beleaguered group’s chief Subrata Roy, who has been in jail for more than a year.

The bidding started when the lawyer of Samriddhi developers agreed to match the Rs.110 crore offer made by Gorakhpur Real Estate Developers Private Limited.

Then Gorakhpur raised it to Rs. 115 crore and the judges sought the rival’s response.

Senior Advocate Paras <g data-gr-id="41">Kuhat</g>, appearing for Samriddhi, took instructions from on of the partners present in the court, and jacked the bid to Rs.125 crore. Then Gorakhpur took it <g data-gr-id="42">upto</g> Rs. 140 <g data-gr-id="51">crore,</g> added Rs. 5 <g data-gr-id="50">crore</g> more and then finally settled at Rs.150 crore. This was matched by Gorakhpur, who was ready to fork out Rs.150 crore.

At this the bench said both the parties have to show their <g data-gr-id="53">bonafides</g> by depositing 25 <g data-gr-id="54">per cent</g> of the amount by July 31 in the SEBI-Sahara account and rest of the money has to be arranged in three equal instalments by October 31.

The Gorakhpur Real Estate company had filed an application objecting the sale of property at Rs 64 crore to Samriddhi Developers and had offered Rs 110 crore.

The Bench, also comprising Justices A R Dave and A K Sikri, said <g data-gr-id="45">failure</g> of any of them to meet the deadline would result in forfeiture of the amount of 25 <g data-gr-id="52">per cent</g> deposited by them. 

The money generated from the sale of Gorakhpur property would be added to the amount already deposited by the Sahara Group in the SEBI-Sahara account and go towards securing Roy’s release.

The bench posted the matter for hearing on August 3 and said it will decide the future course of action.

Gorakhpur Real Estate Developers Private Limited complied with the July 7 order and deposited Rs 11 crore with the Supreme Court Registry to establish its <g data-gr-id="38">bonafides</g>.

Samriddhi also placed a letter and a cheque from its bankers to show its <g data-gr-id="47">bonafides</g>.

Earlier, the court had declined to relax the conditions for interim bail of Roy like depositing Rs 5000 crore in cash and a bank guarantee of equal amount and tough terms including payment of the entire Rs 36,000 crore in 18 months.

Sahara’s counsel Kapil Sibal on Monday reiterated that no business group in the world could pay Rs 36,000 crore and the banks are also saying that how can there be a bank guarantee when it is for sure that there will be a default.