Sahara credit cooperative society limited refund

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On March 29, pursuant to an application by the Ministry of Cooperation, the Supreme Court permitted the government of India to utilise Rs 5,000 crore from the Sahara-SEBI refund account, to pay back the depositors of the Sahara Group of Cooperative Societies. According to a statement by Solicitor General of India Tushar Mehta in the SC, an amount of Rs 24,979 crore is lying unutilised with the Securities and Exchange Board of India (SEBI) in this account. Moneycontrol explains how the money came to be deposited in the Sahara-SEBI refund account, what did the ministry ask of the court, and what the court’s order says. What is the Sahara-SEBI refund account? In 2011, SEBI had ordered Sahara India Real Estate Corporation Ltd (SIRECL) and Sahara Housing Investment Corporation Ltd (SHICL) to refund the money it had raised from investors through certain bonds, known as Optionally Fully Convertible Bonds (OFCD). According to SEBI, these amounts were raised in violation of SEBI (Disclosure and Investor Protection) Guidelines, 2000, (DIP Guidelines), and various regulations of the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2009, (ICDR, 2009). Sahara challenged this at the Supreme Court. In August 2012, the Supreme Court upheld SEBI's directions asking the two firms to refund the money collected from investors, along with 15 per cent interest. Subsequently, Sahara was asked to deposit Rs 24,000 crore with SEBI for further refund to investors. Why did the Minist...

After the Supreme Court on Wednesday allowed a plea by the Centre seeking allocation of ₹5,000 crore out of the Sahara-SEBI fund for refund of deposits of nearly 10 crore investors of the four Sahara group co-operative societies, the Co-operative Ministry said that it will complete the payment process in 9 months. The direction of the apex court’s Bench of Justices MR Shah and CT Ravikumar came on an application filed by the ministry for the refund. Directing the government that the amount should be disbursed to depositors duped by the Sahara group of cooperative societies, the Bench also said that the entire process will be monitored by former SC judge Justice R Subhash Reddy. Four Sahara group societies — Sahara Credit Cooperative Society Limited, Saharayan Universal Multipurpose Society Limited, Humara India Credit Cooperative Society Limited, and Stars Multipurpose Cooperative Society Limited — were registered under the Multi-State Cooperative Societies Act, 2010 between March 2014 and January 2002, the ministry said in a statement. After a large number of complaints were received from all over the country regarding non-payment of deposits to the depositors of these cooperative societies, notices were issued to the co-operatives and hearing was held before the Central Registrar. The Central Registrar had directed the involved cooperatives to pay the dues of the investors and barred them from accepting new deposits and renewing existing deposits. The Ministry of Coopera...

The Union government has requested the Supreme Court to release an amount of ₹5,000 crore deposited by the Sahara group in a separate proceeding pending in the top court for clearing dues of innocent depositors of four Sahara credit cooperative societies who were cheated of their investment. A PIL has sought a probe by the Central Bureau of Investigation (CBI) against the Sahara firms (Representative Photo) An application was filed in this regard by the ministry of cooperation in a pending public interest litigation (PIL) filed by one Pinak Pani Mohanty who sought a direction to pay the amount to the depositors who invested in several chit fund companies and Sahara credit firms. The PIL also sought a probe by the Central Bureau of Investigation (CBI) against the Sahara firms and demanded the amount seized so far by the agency, while probing the case against chit-fund companies, to be used to give back to investors. Also Read: ₹8.54 lakh along with compensation Solicitor General Tushar Mehta representing the government of India appeared in the PIL proceeding before a bench of justices MR Shah and CT Ravikumar to mention the application filed pursuant to a high-level meeting chaired under the ministry, with representatives from 18 other departments and investigating agencies including Securities Exchange Board of India (SEBI), Serious Frauds Investigation Office, Income Tax, Enforcement Directorate, CBI, ministry of corporate affairs, among others. The bench agreed to take u...

On 31 August 2012, the Supreme Court of India (SC) handed down a historic verdict asking two Sahara companies to refund over Rs20,000 crore to investors that was illegally raised through quasi-debentures without regulatory clearance. High drama continued even after the verdict with the Court enhancing Sahara’s repayment to Rs25,700 crore in 2015. Subrata Roy also spent over two years in jail for contempt of court. He remains out on bail. The Court directed the Securities and Exchange Board of India (SEBI) to identify investors of the two Sahara realty firms and refund the money under the supervision of justice BN Agrawal, a retired Supreme Court judge. That was nine years ago! In February 2020, the minister of state for finance told parliament that the Sahara group has deposited only Rs15,448.67 crore with the ‘Sebi-Sahara Refund’ account, of which it has been able to refund only Rs109.86 crore to 14,146 applicants who came forward with legitimate documents. Since then, it has paid out a little more. While SEBI cannot find investors of the realty companies, lakhs of genuine investors are coming forward from all over the country demanding payment. They were lured to invest in the controversial group through four giant cooperative societies spread across India. Many have a genuine claim to the money collected by SEBI, but the regulator is sticking to a narrow definition of what the Supreme Court has ordered and making no effort to help investors who were duped. Sahara invest...

MoneyLife reports the District Consumer Disputes Redressal Commission of North 24 Paraganas, West Bengal has asked Sahara Credit Co-Operative Society to return with interest, money invested by an investor in the company’s scheme. The District Commission said since the SEBI was not connected with the investment, the case against the market regulator is dismissed. On SEBI, the bench stated that the complainant had not sought any relief against the market regulator, which is also in no way connected with the complainant’s investment. Sahara Credit Cooperative Society and its regional manager did not contest the case by filing any written statements. SEBI, which was also a party, filed its reply. SEBI stated that it is processing the refund of the investors who had invested in debentures issued by Sahara India Real Estate Cooperation Ltd (SIRECL) and Sahara Housing Investment Corporation Ltd (SHICL) in terms of the direction of the Supreme Court.