SC proposes panel to verify Sahara staff dues before releasing funds
The Supreme Court was hearing multiple applications, some of which were filed by former Sahara employees seeking unpaid salaries.
A Supreme Court special bench on Monday indicated it may appoint an independent committee to verify the salary claims of thousands of Sahara Group employees before deciding whether any money can be released from the Sebi-Sahara refund account.
A three-judge special bench was constituted on the recommendation of Chief Justice Surya Kant to hear the long-pending cases.
The bench, consisting of Justice M.M. Sundresh, Justice Prasanna B. Varale and Justice Vipul M. Pancholi, made it clear that the committee will first examine who is entitled to it and if they have worked for Sahara. Based on the committee’s report, the court will further decide the case.
"Now we will appoint a committee. Based upon the committee's report, then we will pass an order," the bench said during the hearing. “We are not going to release any amount today.”
The court was hearing multiple applications, some of which were filed by former Sahara employees seeking unpaid salaries. According to Sahara, it has prepared employee-wise records showing each person's name, employee code, company, period of service and outstanding salary. However, the judges said these figures could not be accepted without independent verification.
The committee is expected to verify whether each claimant actually worked for Sahara, the period of employment, salary arrears, gratuity and the total amount payable. Once the exercise is complete, the committee will submit a report to the court, which will then decide whether any money can be released.
The court will hear the matter again on Friday to decide the members of the committee.
Employee dues get priority
The judges also discussed how the committee should function, including its composition, timeline and expenses. They asked the lawyers to suggest the committee's structure and said the matter would be taken up again after those proposals are filed.
The financially stressed Sahara told the court that it had filed applications covering more than 16,000 employees of Sahara India Commercial Corp. Ltd. and related companies, as well as another 9,000 employees of Sahara Cooperative Society.
Counsel appearing for the Sahara workers told the court that "people are not being paid for 10 years". The bench, in its response, said, "employees have to be first taken care of," dropping the hint that employees' salary claims will be dealt with on priority, ahead of any case related to Sahara payments.
The bench also took note of the Supreme Court's 4 September 2024 order, in which Sahara had to disclose all its assets and explain how the proceeds of the sale would be used to repay employees. Sahara had not complied with that order.
About the Author
Yash Tiwari
Yash Tiwari is a Mumbai-based journalist who reports on corporate and regulatory developments, with a focus on court-driven policy shifts and the intersection of law and public policy. He has been in the profession for two years. Before joining Mint, he worked at NDTV Profit as an assistant producer on the TV desk while also reporting, gaining experience across television and print journalism and combining reporting with production expertise.
Born in Kolkata, a city he remains deeply connected to, Yash has a keen interest in the technicalities of Indian law and aims to decode complex legal developments in a clear and accessible manner for readers. He is a graduate of the Asian College of Journalism, Chennai, where he completed his postgraduate diploma in journalism.
He closely follows politics and government policies, and has covered several state elections as a freelance journalist. His work is driven by the idea of making law less intimidating and more understandable for the general public.
When not at work, Yash can be found playing cricket, revisiting classic matches, or engaging in conversations about the evolving landscape of law and policy in India.
Source: Livemint — Companies
