The petitioners, a family of three, have invoked the jurisdiction of the Supreme Court under Article 32 of the Indian Constitution, seeking several directions related to the liquidation and distribution of assets attached by the Securities and Exchange Board of India (SEBI). Here’s a summary of the main points and directions sought:

Reliefs Sought:

1. Liquidation of Assets: Petitioners request a writ of mandamus directing SEBI to liquidate the attached assets within six months, or alternatively, to allow the petitioners to assist in the liquidation process.
2. Distribution to Investors: Petitioners seek directions for SEBI to distribute the liquidated amount to genuine investors as soon as possible.
3. Assistance in Identifying Investors: Petitioners request to assist SEBI in identifying genuine investors and the amounts deposited by them.
4. Additional Orders: Any other orders deemed fit by the Court.

Background:

1. Company Details: Petitioner Nos. 1 and 2 are founder-Directors of Sai Prasad Properties Ltd. (SPPL) and other companies in the Sai Group, including Sai Prasad Foods Ltd. (SPFL), Sai Prasad Corporation Ltd. (SPCL), and Shree Sai Space Creations Ltd. (SSSCL).

2. SEBI's Actions:

   • Complaints and Orders: SEBI received multiple complaints about illegal fund mobilization by these companies, leading to several orders restraining them from collecting further funds and directing them to refund the collected money.
   • Investigations: Complaints and references from various authorities, including the Registrar of Companies and the Income Tax Department, led to interim and final orders by SEBI against these companies.
   • Attachment and Auctions: SEBI and the MPID Court attached numerous properties and jewelry owned by these companies, auctioning some of them to liquidate assets.

3. Criminal Proceedings:

   • Multiple FIRs were registered against the petitioners in various states under the Prize Chits and Money Circulation Schemes (Banning) Act, 1978, and other laws. Petitioners were arrested, and many continue to be in custody.

Court's Considerations:

The Court considered the difficulties faced by SEBI and the MPID Court in liquidating the assets and satisfying investor claims. The need for a systematic and efficient process was emphasized, considering:

• The prolonged custody of Petitioners Nos. 1 and 2.
• The long wait of investors for their refunds.
• The complex legal and administrative issues surrounding the liquidation of properties.

Directions Issued:

The Supreme Court, invoking its powers under Article 142, constituted a High-Powered Sale Committee (HPSC) to oversee the liquidation of assets and refund process. Key directions include:

1. Composition of HPSC:

   • Chairperson: Former Supreme Court Judge, Justice S. Ravindra Bhatt.
   • Member: Former High Court Judge, Dr. Justice Satish Chandra.
   • SEBI Nominee: An officer preferably in the rank of Director.
   • State Representatives: Officers of the Revenue Department (not below the rank of Collector) from the concerned states.
   • Member Secretary-cum-Nodal Officer: Retired Registrar of the Supreme Court, Mr. Pardeep Kumar Sharma.
   • Secretary: Deputy Secretary, Department of Home, Government of Maharashtra.

2. HPSC's Responsibilities:

   • Obtain and manage property documents.
   • Ensure properties are marked as entrusted/encumbered in favour of HPSC.
   • Appoint certified valuers and engage e-auction service providers.
   • Oversee the auction process, ensuring properties are sold free from encumbrances.
   • Handle investor claims and refund process through a dedicated escrow account.

3. Administrative and Secretarial Assistance:

   • SEBI will assist in setting up HPSC's office and provide necessary infrastructure.
   • HPSC will maintain a dedicated website for auctions, advertisements, and the refund process.

4. Refund Process:

   • Identify and create a database of investors.
   • Determine the refund amount for each investor.
   • Establish a threshold recovery limit and categorize investors for phased refunds.
   • Publicize the refund process widely.

5. Obligations of Petitioners and Their Companies:

   • Submit details and original documents of all immovable assets.
   • Execute necessary sale deeds as instructed by HPSC.
   • Cooperate with HPSC in resolving any title disputes for auction purposes.

6. Conclusion of the Process:

   • The entire liquidation and refund process is aimed to be concluded within one year.

7. Remuneration:

   • The Court will consider appropriate remuneration for the Chairperson and members of HPSC, based on guidelines from similar cases.

The Supreme Court's decision aims to streamline the liquidation of the attached assets and ensure the timely refund of investors' money through the establishment of a High-Powered Sale Committee, ensuring transparency, efficiency, and fairness in the process.