BHOPAL: Six months after launching an investigation into alleged irregularities in the sale of Sahara Group’s land in multiple Madhya Pradesh cities, the state’s Economic Offences Wing (EOW) registered a case on Friday against Sahara Group companies and top officials, accusing them of cheating and criminal conspiracy.
Those named in the FIR registered under Sections 420 and 120B of the Indian Penal Code (IPC) include Sahara India, Sahara Prime City Limited, Seemanto Roy (Corporate Control Management), JB Roy (DGM-DMW), OP Srivastava (Deputy Managing Worker), and others.
Two of the accused named in the FIR – Seemanto Roy and JB Roy – are the son and brother respectively of Sahara India Parivar’s late chairman, Subrata Roy.
Investigations by the state's economic offence watchdog have allegedly revealed that the Sahara Group embezzled Rs 72.82 crore from the sale of over 500 acres of land in five districts of Madhya Pradesh, including the state capital Bhopal, Jabalpur, Katni, Sagar, and Gwalior.
The probe also allegedly found that the Sahara Group wilfully violated Supreme Court directives issued in 2012, 2014, and 2016. The company is accused of transferring Rs F72.82 crore from the sale of these assets to other accounts, instead of depositing the proceeds in the SEBI-Sahara Refund Account, which was established for refunding lakhs of small investors across India.
In 2012 and 2014, the Supreme Court had directed Sahara Group to sell its assets to repay investors’ money, which had been collected from the public under various investment schemes. Following delays and irregularities in repayment, the Securities and Exchange Board of India (SEBI) issued an order in 2012, mandating the refund of all investor funds.
That same year, the apex court ordered the group to sell its immovable properties and deposit the proceeds directly into the SEBI-Sahara Refund Account.
In June 2014, the Supreme Court further clarified that the properties must not be sold below the central valuation rate and that buyers should not be related to the Sahara Group.
Despite these clear directions, Sahara Group allegedly continued to sell immovable properties without following due process. In 2016, the apex court reiterated that properties must not be sold at less than 90% of the relevant sector's circular rate, and that entire sale proceeds (after deducting TDS and applicable taxes) must be deposited in the SEBI-Sahara Refund Account.
According to informed sources, of the over 500 acres of land sold across the five districts, approximately 310 acres were sold to companies allegedly linked to family members of an influential mining baron-turned-politician from north-eastern Madhya Pradesh.
Additionally, about 100 acres were reportedly sold to a close aide of another influential politician from the Bundelkhand region.
While the market value of the 500-plus acres of land is estimated at around ₹1,000 crore, the properties were sold for just over ₹120 crore. Of the proceeds, more than ₹72 crore was allegedly transferred to various Sahara Group subsidiary accounts, instead of the SEBI-Sahara Refund Account, suggesting a lack of intention to repay investors.