The Supreme Court has stayed the development of a 106-acre land parcel in Versova, owned by the Sahara group, over concerns related to environmental impact and valuation. The decision affects Oberoi Realty, which had expressed interest in the project. The court has also directed that the ₹1,000 crore deposited by Oberoi Realty with the court be returned with interest.
A bench led by Chief Justice of India Sanjiv Khanna has given the Union Ministry of Environment, Forests, and Climate Change, along with the Maharashtra government, two weeks to clarify whether the land is classified as a mangrove forest. If such classification is confirmed, construction could be restricted or banned under Coastal Regulation Zone (CRZ) rules.
Following the court ruling, Oberoi Realty’s stock showed volatility, closing 1% lower at ₹1,623.90 on the National Stock Exchange, recovering from an earlier dip to ₹1,565.45. The company’s stock has declined over 28% since January, influenced by market trends and weaker Q3FY25 results due to slower sales and project delays.
Analysts suggest that while the news has impacted market sentiment, the company’s broader project pipeline may help stabilize its stock over time. Market experts note that investors take time to adjust to legal developments, and the company has multiple projects underway that could offset this setback.
The Supreme Court also directed Sahara and the Securities and Exchange Board of India (SEBI) to consult real estate experts to maximize the value of the land, either through an outright sale or a joint venture. The court’s objective is to facilitate the recovery of funds owed to Sahara depositors, estimated at ₹25,000 crore.
During the hearing, Sahara’s counsel Kapil Sibal suggested that a joint venture could allow the group to pay ₹8,000 crore before the 2025-end deadline. However, Chief Justice Khanna noted that other bidders had proposed full payment in exchange for outright ownership of the land.
Oberoi Realty and Valor Estate (formerly DB Realty) had both proposed joint ventures with Sahara India Commercial Corp. In January, senior advocate Abhishek Manu Singhvi, representing Oberoi Realty, argued that a 14-year development plan could generate ₹21,000 crore for Sahara.
Oberoi Realty has yet to issue a public statement regarding the court’s decision. In its Q3 earnings call, chairman and managing director Vikas Oberoi declined to comment on the Versova land case, citing ongoing legal proceedings.
The Supreme Court’s ruling adds uncertainty to the future of the Versova land parcel. The final decision on land classification and valuation will influence the next steps for stakeholders, including potential bidders and regulatory bodies.
