Public Caution Issued Against Buying Assets of Sai Prasad Group: Supreme Court Authorizes High-Powered Sale Committee
Summary:
The Supreme Court of India has constituted a High-Powered Sale Committee (HPSC) to oversee the public auction and liquidation of all assets belonging to the Sai Prasad Group of Companies and its directors. The public is strictly cautioned against dealing with any of these properties, as the sale rights lie solely with HPSC, and unauthorized transactions may attract legal action.
Introduction:
In a landmark order dated July 15, 2024, the Hon’ble Supreme Court of India, in Writ Petition (Crl.) No. 546 of 2023, has empowered a High-Powered Sale Committee (HPSC) to manage the sale and liquidation of assets belonging to Sai Prasad Group of Companies (SPG) and its directors. This includes companies like Sai Prasad Properties Ltd., Sai Prasad Foods Ltd., and Sai Prasad Corporation Ltd., along with their directors Balasaheb Keshavrao Bhapkar, Vandana Bhapkar, and Shashank B. Bhapkar. The assets, previously attached by the Government of Maharashtra and SEBI, will be sold via public auction under the supervision of HPSC.
Legal Background and Asset Attachment:
The properties of the SPG companies and their directors were previously attached under the Maharashtra Protection of Interest of Depositors in Financial Establishments Act, 1999 (MPID Act) through notifications dated 23.03.2016 and 28.06.2016, and through Prohibitory Orders issued by SEBI on 10.03.2017 and 12.02.2020 under Section 28A of the SEBI Act, 1992.
The Supreme Court has granted HPSC the powers of a civil court to expedite the liquidation process and has clearly stated that no other court or authority can create third-party interests in the assets in question.
In line with Supreme Court directions:
- The sale and auction of SPG assets will be conducted only by HPSC, assisted by StockHolding Document Management System Ltd.
- Public is strictly warned not to purchase, deal in, or take possession of these properties.
- Any unauthorized transactions will be considered illegal and carried out at the buyer’s own risk, with potential legal consequences.
- These properties are encumbered and not available for free transfer or registration in favor of any third party.
Official Notification
N O T I C E
Caution to public against buying/dealing with assetsof Sai Prasad Group of companiesand its Directors
It is brought to the notice of the public at large that Hon’ble the Supreme Court of India vide order dated July15, 2024,read with other orders passed from time to time, in Writ Petition (Crl.) No.546 of 2023in the matter of Balasaheb Keshavrao Bhapkar & Ors. vs. Securities and Exchange Board of Indiahas inter alia constituted a High-Powered Sale Committee (hereinafter referred to as “HPSC”)and has empowered HPSC to liquidateall the movable and immovable assets of Sai Prasad Group of companies viz.
(i)M/s.Sai Prasad Properties Ltd.,
(ii)M/s.Sai Prasad Foods Ltd.,
(iii)M/s. Sai Prasad Corporation Ltd. (hereinafter referred to as “SPG companies”)and
(iv)its directors viz., Shri Balasaheb Keshavrao Bhapkar, Smt. Vandana Bhapkar and Shri Shashank B. Bhapkar,
situated in various States by way of public auction,which are attached vide Notifications dated 23.03.2016 and 28.06.2016 by Government of Maharashtra under the Maharashtra Protection of Interest of Depositors in Financial Establishment Act, 1999 (MPID Act) and vide Prohibitory Orders dated 10.03.2017 and 12.02.2020 in recovery proceedings initiated by Securities and Exchange Board of India (SEBI) under section 28A of the SEBI Act, 1992.
The HPSChasalsobeen vested with all the powers of a civil court for taking necessary actions to speed up the liquidation of the properties of theSPG companies.Further, the Hon’ble Supreme Court has given directions that no court or authority can create a third party interest in the assets of SPG companies and its directors attached by Government of Maharashtra and SEBI.
In compliance with the directionsof the Hon’ble Supreme Court, HPSC has started the process of sale of assets of SPG companies and its directors by way of public auction with the assistance of StockHolding Document Management System Ltd.
The public at large is cautioned against buying/dealing with any of the assets wherein the SPG companies or its Directors or any of its associates/subsidiaries have any interest/rights, directly or indirectly. Further, any person illegally and unauthorizedly buying or dealing with or taking possession of the assetsof SPG companies or its Directors or any of its associates/subsidiaries shall be doing at his own risk and shall be liable for action in accordance with lawsince in terms of the directions of the Hon’ble Supreme Court, power to auction/sell them lies solely and exclusively with the HPSC as these properties stand encumbered and are not free for being registered in favour of any third person / party.
MEMBER SECRETARY
Place: New Delhi
Date: June 10,2025
The Supreme Court’s directive and formation of HPSC serve to protect investor interests and ensure a transparent and court-monitored liquidation of the Sai Prasad Group’s assets. The public is advised to stay informed and avoid any unauthorized dealings involving the said properties. Only transactions conducted through HPSC will be legally valid. Ignoring this caution could result in financial loss and legal repercussions.