Supreme Court Sets Up Ex-CJ-Led Committee To Resolve Claims In Alleged Sai Prakash Fraud Cases

The Supreme Court on Thursday constituted a Special Committee headed by former Rajasthan and Madras High Court Chief Justice Manindra Mohan Shrivastava to identify and settle claims and resolve disputes relating to Sai Prakash group companies.

The Court also granted Pushpendra Singh Baghel interim bail for three months.

A bench of Justices Vikram Nath and Sandeep Mehta noted that Baghel had remained in continuous custody for more than 11 years. The bench also observed that the allegations substantially related to investor claims capable of monetary settlement.

“Having considered the submissions advanced by learned senior counsel for the petitioner and learned counsel representing the respondents, and taking into consideration the peculiar facts and circumstances of the case, particularly the fact that the petitioner has remained incarcerated continuously for more than 11 years and that the alleged disputes pertain substantially to investor claims capable of being monetarily quantified and settled, we are of the firm opinion that if a genuine effort is made to settle the monetary claims of the investors, not only will their grievances be requited but additionally, a possibility may arise of multiple case being closed on account of amicable settlement.”, the court noted.

The case concerns multiple FIRs registered in different States in relation to the business activities of Sai Prakash Properties Development Limited (SPPDL) and its sister concerns. According to the order, Baghel was arraigned as an accused in approximately 149 FIRs and criminal cases lodged in different States. He has remained in continuous judicial custody since his arrest on June 27, 2015 in FIR No. 328/2015 registered at M.P. Nagar Police Station, Bhopal.

The order records that the allegations substantially arise from the alleged operation of a collective investment scheme through SPPDL and associated entities. Investors were allegedly induced to invest monies in land-development schemes with promises of high returns and profit sharing.

Before the Court, Senior Advocate Vinay K. Garg, appearing for Baghel, submitted that his client was willing to settle disputes with investors. He also submitted that Baghel was willing to liquidate lands owned by him and lands owned or acquired by Sai Prakash group companies.

The Court noted the submission that the cumulative value of the movable and immovable properties was in excess of ₹250 crore. Investor liabilities, according to the submission recorded in the order, were stated to be less than ₹115 crore.

The Court thereafter directed the constitution of a Special Committee headed by Justice Shrivastava.

"We, therefore, direct formation of a Special Committee headed by Mr. Justice Manindra Mohan Shrivastava, Former Chief Justice of Rajasthan High Court and Madras High Court. The Special Committee shall endeavour to identify and to settle all claims and resolve all the disputes in relation to the affairs of the company Sai Prakash Assurance Services Private Limited and the other associate companies which indulged in the alleged fraudulent activities leading to the registration of the multiple FIRs in connection with which the petitioner is in custody/stands convicted", it ordered.

The Court directed Baghel to proactively cooperate with the Committee so that the requisite steps, including sale of assets, could be processed to generate funds required for settling monetary claims of investors and complainants.

“The petitioner shall be released on interim bail for a period of three months in connection with all the FIRs registered against him across all jurisdictions and also in relation to the judgments convicting him upon furnishing two surety bonds in the sum of Rs.10,00,000/- (Rupees Ten Lakhs only) each and a personal bond in the like amount, to the satisfaction of the Registrar (Judicial) of this Court.”

The Court directed the Registrar (Judicial) to ensure that release orders are issued to all courts and prisons where Baghel's custody is required.

Upon release, Baghel has been directed to furnish details of all FIRs and criminal proceedings pending against him and the associated companies to the Committee. He has also been directed to provide details of investor liabilities, movable and immovable properties, bank accounts, fixed deposits, other liquid assets, company records and any other material required by the Committee.

The Court further directed every State where FIRs have been registered or lands are located to appoint a nodal officer to facilitate the Committee's proceedings. The Chief Secretaries of the concerned States have been directed to do the needful upon receiving a communication from the Chairperson of the Special Committee.

The Committee has been asked to submit an interim status report by September 15, 2026. The report is to indicate progress in the identification of investors, verification of liabilities and liquidation or valuation of properties.

The matter will next be taken up on September 21, 2026.