SC agrees to list SFIO’s plea challenging Delhi HC relief to Sahara group firms

New Delhi:- The Supreme Court on Tuesday agreed to list a plea by SFIO challenging a Delhi High Court order, which stayed the investigation into companies related to the Sahara Group.

A plea by Serious Fraud Investigation Office (SFIO) said: “The petitioner SFIO has filed the captioned petition against the final judgement of the Delhi High Court dated December 13, 2021, whereby the high court erroneously granted interim relief to respondents 1 to 3 by staying the operation, implementation, and execution of the investigation orders dated October 31, 2018 and October 27, 2020 passed by the Central government and stayed all subsequent actions and proceedings initiated pursuant thereof, including coercive proceedings and look out notices issued against the respondents.”

Pressing for urgent listing of the matter, Solicitor General Tushar Mehta submitted before a bench headed by Chief Justice N.V. Ramana that there was some apprehension on the part of the SFIO in connection with another bench recently staying a lookout circular against Sahara Group chief Subrata Roy.

The SFIO, a statutory corporate fraud investigating agency, moved the top court against the December 13, 2021 Delhi High Court order. “It is submitted by way of the order, all actions and proceedings undertaken under the orders dated October 31, 2018 and October 27, 2020, passed by the Central government have been stayed which seriously prejudice the ongoing investigations and proceedings which necessitated urgent listing of the captioned petitions,” added the SFIO’s plea.

It further added that the high court order was passed by ignoring the material facts available on record, and sought stay on the high court order.

The high court had observed that petitioners Sahara Housing Investment Corporation Ltd and others have made out a prima facie case for the grant of interim relief. It further added that the balance of convenience was also in their favour, and irreparable loss would be caused to them, if interim relief is not granted. The high court had asked the Central government to file its response to the petition.

The petitioners — Sahara firm and others — had submitted before the high court that the first order was passed on October 31, 2018, for investigation into the affairs of three companies — Sahara Q Shop Unique Products Range Ltd, Sahara Q Gold Mart Ltd and Sahara Housing Investment Corporation Ltd. The petitioners further contended that perusal of the October 27, 2020 revealed that no reason was assigned, why it was necessary to begin an investigation against the six companies.

These companies are: Aamby Valley Ltd, Qing Amby City Developers Corporation Ltd, Sahara India Commercial Corporation Ltd, Sahara Prime City Ltd, Sahara India Financial Corporation Ltd and Sahara India Real Estate Corporation Ltd.