Ten companies and twenty directors associated with the Sahara Group were imposed with substantial costs by the Supreme Court to fortify accountability. Justices Hima Kohli and Sandeep Mehta presided over the court and took a firm stance against corporate indifference against normal citizens.
Background of the Case
Deputy Chief Manager Worker and Anr. v. Rajinder Kumar and Ors.
The case revolves around Homebuyers and Sahara Group companies. The company had failed to delivered flats promised to homebuyers. In October 2023, the Supreme Court had ordered the Sahara Group to take care of the matter and provide the promised buyers with their property but the company had failed in their given previous six opporty\unity.
Court's Ruling
The court has imposed severe financial penalty ordering them to pay Rs. 10 lakhs by each individual company and Rs. 5 lakhs by each of the 20 directors summating the total penalty to Rs. 2 crores.
The court has held the companies towards social responsibility and insisted the fine be paid to the Kerala Chief Minister's Relief Fund. The funds will be used specifically for the restoration of damages caused by the recent landslides in Wayanad, reflecting the judiciary's awareness of and responsiveness to pressing public welfare needs.
Conclusion
This ruling serves as a strong message to corporate entities across India. The court has made a firm statement that exploitation of vulnerable sections of society such as homebuyers and non-compliance with court orders will not be well recieved. This has turned out to be a major ruling in cases of corporate obligations and consumer rights.
TAGS: Supreme Court of India Sahara Group homebuyers dispute corporate accountability non-compliance penalties Kerala Chief Minister's Relief Fund Wayanad landslides
