The Economic Offences Wing (EOW) of Madhya Pradesh Police has issued notices to two individuals in connection with alleged irregularities in land transactions linked to the Sahara Group. The notices, dated 28 were sent to Amit Mishra, the Jabalpur based authorized representative of Nysa Devbuild Pvt. Ltd., and Tapas Kumar Basak, a Mumbai based employee of Sahara India.
Both have been directed to appear before the EOW office in Bhopal on 5 February with documents related to company formation, board meeting minutes, power of attorney papers, and financial transactions tied to the controversial land deals.
The notices specify that the preliminary enquiry (PE No. 01/2025) pertains to alleged financial irregularities in the purchase and sale of agricultural land in Jabalpur and Katni, originally owned by Sahara India.
Mishra’s company, Nysa Devbuild, is accused of purchasing these lands through transactions that allegedly involved violations of financial regulations, while Basak, representing Sahara, is being questioned about the sale of these properties and the routing of the proceeds.
These summonses mark the latest development in an investigation that gained momentum following a report published by The Sunday Guardian on 26 January. The said report (Sahara investors’ refunds at risk as land sold for 1/10th of value) highlighted how companies allegedly linked to BJP MLA Sanjay Pathak had purchased over 310 acres of Sahara-owned land in Bhopal, Jabalpur, and Katni—valued at around Rs 1000 crore—for just Rs 88 crore. The report had revealed that the land transactions, executed between 2022 and 2023, potentially violated Supreme Court-mandated procedures intended to safeguard the interests of small investors affected by Sahara’s controversial investment schemes.
The land deals in question were supposed to adhere to a 2014 Supreme Court directive requiring that Sahara Group’s properties be sold at market value, with proceeds directly deposited into the SEBI-Sahara Refund Account to repay investors.
However, the EOW’s investigation suggests that the sale proceeds were allegedly diverted to accounts controlled by Sahara entities and shell companies, bypassing the designated SEBI account. Documents reviewed by the EOW indicate that companies like Nysa Devbuild Pvt. Ltd., Nyra Devbuild Pvt. Ltd., and Synap Real Estate Pvt. Ltd. purchased these land parcels at prices significantly below market rates. Additionally, there are allegations that local revenue officials manipulated land use classifications from residential to agricultural to minimize stamp duty costs during these transactions.
While MLA Sanjay Pathak has not been named in the EOW’s preliminary enquiry, his alleged connections to the companies under investigation have drawn public attention. Regulatory filings reveal that Pathak’s son, Yash Pathak, and his mother, Nirmala Pathak, allegedly hold significant equity in companies involved in the transactions. Furthermore, one of the directors of Synap Real Estate, Sachin Tiwari, is allegedly reportedly associated with the BJP IT Cell in Katni. Pathak, a former Congress leader who joined the BJP in 2014, is known for his business interests in mining and real estate.
His close association with senior BJP leaders, including Union Minister Shivraj Singh Chouhan, has added a political dimension to the case with party insiders suggesting that the strict action in this case by the EOW could only happen against Pathak after receiving a yes from the political bosses in Bhopal.
The SEBI has so far refused to comment on these developments. The Sunday Guardian reached out to SEBI with the following queries-
1-Has SEBI been informed about the alleged diversion of funds from the sale of Sahara Group’s properties, which were supposed to be deposited directly into the SEBI-Sahara Refund Account as per the Supreme Court’s 2014 directive? If so, what actions has SEBI taken in response to these reported violations?
2- Given the allegations that Sahara Group deposited sale proceeds into private accounts and shell companies instead of the SEBI-mandated refund account, does SEBI plan to initiate an independent investigation or collaborate with the Economic Offences Wing (EOW) to ensure investor funds are safeguarded?
No response was shared by the regulatory authority till the time the story went to print.