Rehan Khan
Retired Supreme Court Justice S Ravindra Bhat and former Allahabad High Court Justice Satish Chandra were appointed on 15th July to join a high-powered sales committee responsible for overseeing and conducting the action of assets of worth Rs.4,000 crores as part of a case involving the liquidation of a company’s assets Balasaheb Keshawrao Bhapkar & Ors vs Securities and Exchange Board of India.
On 15th July, a division Bench consisting of Justices Surya Kant and KV Viswanathan of the Supreme Court offered the formation of the Supreme Court ordered the formation of the committee to head to lead the liquidation process of the Sai Prasad Group of Companies.
The committee will be chaired by Justice Bhat, and the other members will include Supreme Court Registrar Pradeep Kumar Sharma, a nominee of the Securities and Exchange Board of India (SEBI), the Maharashtra Deputy Home Secretary, and one revenue official each from the States of Chhattisgarh, Maharashtra, Madhya Pradesh, Rajasthan, Uttar Pradesh and Haryana.
Justice Bhat will receive an honorarium of ₹2 lakh per sitting, while Justice Chandra will be entitled to ₹1.5 lakh per sitting.
In December 2019, the SEBI initiated the auction of properties linked to the Sai Prasad Group of Companies as part of a ₹4,000-crore investment fraud case dating back to 2016. More than 20 lakh investors were promised substantial returns but were ultimately left without recourse.
The present judgment arose from a petition filed by the Group’s founder-directors—father, mother, and son. They requested the court to direct SEBI to liquidate the attached assets and disburse the sale proceeds to genuine investors.
In its judgment, the Court determined that the appointed sale committee could consult with experts as it deemed necessary. The committee’s responsibilities include obtaining all relevant property documents and original title deeds, creating a database, appointing certified valuers, and proceeding in a manner similar to a civil court. Additionally, the sale proceeds are required to be deposited into a separate SEBI account.
The judgment further specified the procedures the committee must follow to auction the assets and handle the sale proceeds. SEBI and the States were directed to provide the necessary administrative, secretarial, and logistical support to facilitate the process.
Advocate TRB Sivakumar represented the petitioners, the Bhapkar family, in court. SEBI was represented by a legal team from Expletus Legal.