Lok Sabha Question No. 268 (STARRED), answered on 2021-03-15
Subject: Sahara India Group Investors
Ministry: CORPORATE AFFAIRS
Asked by: Nisith Pramanik, Sangeeta Kumari Singh Deo

## GOVERNMENT OF INDIA MINISTRY OF CORPORATE AFFAIRS LOK SABHA

STARRED QUESTION NO. 268

ANSWERED ON MONDAY, MARCH 15, 2021/ PHALGUNA 24, 1942 (SAKA)

## SAHARA INDIA GROUP INVESTORS QUESTION

*268.  SHRI NISITH PRAMANIK:

SHRIMATI SANGEETA KUMARI SINGH DEO:

Will the Minister of CORPORATE AFFAIRS be pleased to state:

कारपोरेट कार्य मंत्री

- (a)  whether  the  Government  has  examined  the  complaints  received  against Sahara India for its Sahara Q Shop (SQS) scheme and if so, the details thereof;
- (b)  whether the Government is aware that SQS scheme came into existence on forced  conversion  of  investments  from  Sahara  India  Real  Estate  Corporation/ Sahara  Housing  Investment  Corporation  and  if  so,  the  details  thereof  and  the action taken thereon;
- (c)  whether  the  Government  has  collected  data  of  SQS  Investors  and  cases lodged by them across the country and if so, the details thereof and if not, the reasons therefor;
- (d)  whether  the  Government  is  aware  that  SQS  investments  are  now  converted into  Saharayan  Universal  Multipurpose  Society  Ltd  and  other  Sahara  Group schemes and if so, the Government's reaction thereto; and
- (e)  The  measures  proposed  to  be  taken  by  the  Government  to  ensure  the  safe refund to investors at the earliest?

## ANSWER

MINISTER OF FINANCE

AND CORPORATE AFFAIRS                                (SHRIMATI NIRMALA SITHARAMAN) वित्त एिं कारपोरेट कार्य मंत्री ( श्रीमती विमयला सीतारमण )

(a) to (e): A Statement is laid on the Table of the House.

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STATEMENT  REFERRED  TO  IN  REPLY  TO  PARTS  (a)  to  (e)  OF  LOK  SABHA STARRED QUESTION NO. 268 FOR 15 TH  MARCH, 2021 REGARDING SAHARA INDIA GROUP INVESTORS:

(a): Ministry of Corporate Affairs has been receiving large number of complaints approx. 17000 from investors and through various authorities for non-payment of investment  amount  against  Sahara  Q  Shop  Unique  Products  Range  Limited. Central Government had ordered Investigation under Section 212(1)(a) & (c) of the Companies Act, 2013 (the Act)  into the affairs of Sahara Q Shop Unique Products Range  Limited,  Sahara  Q  Gold  Mart  Limited  and  Sahara  Housing  Investment Corporation  Limited  on  31.10.2018  to  be  carried  out  by  the  Serious  Fraud Investigation  Office  (SFIO)  on  the  recommendation  of  Registrar  of  Companies (ROC), Mumbai vide his report dated 14.08.2018 under section 208 of the Act.   All the complaints are being investigated. Further, SFIO has examined that majority of the complaints pertain to the following:

-  Collection of deposits on false assurance.
-  Conversion of investments of Sahara Housing Corporation Limited and Sahara India  Real  Estate  Corporation  Limited  into  Sahara  Q  Shop  and  other  Sahara group companies.
-  Conversion of deposits from Sahara Q Shop to co-operative societies of Sahara Group.
-  Non-payment of maturity deposits; and
-  Forceful conversion of money of investors into other group companies.

(b):  There  are  complaints  alleging  the  conversion  of  investments  of  Sahara Housing Corporation  Limited  and  Sahara  India  Real  Estate  Corporation  Limited. The  directors  of  these  companies  of  Sahara  have  confirmed  the  conversions during the investigation by SFIO.  The collection/ repayments/ conversions have been done through a partnership firm namely 'Sahara India' and huge fund flow is seen from Sahara India into the books of account of Sahara Housing Corporation Limited  and  Sahara  Q  Shop.  Funds  have  been  transferred  from  Sahara  Housing Corporation Limited to Sahara Q Shop also.

- (c):  The  database  of  the  investors  of  SQS  and  other  group  entities  who  have collected  money  from  public  has  been  obtained.  The  database  of  investors revealed that the money collected across 26 States of the country is through 2.77 crore policies. The data regarding the cases lodged by the investors in different States is not maintained by this Ministry.

(d) and (e):  The investigation by SFIO so far has revealed that SQS investments are  being  converted  into  other  schemes  in  Saharayan  Universal  Multipurpose Society Limited, Sahara Credit Co-operative Societies and two other societies of the  group.  SFIO  is  entrusted  with  the  investigation  into  the  affairs  of  Sahara  Q Shop and 8 other companies of the Sahara Group. Hon'ble Supreme Court vide its Order  dated  August  31,  2012  directed  SEBI  to  make  refund  to  only  those investors,  who  invested  in  Optionally  Fully  Convertible  Debentures  (OFCDs)  of Sahara  India  Real  Estate  Corporation  Ltd.  (SIRECL)  and/  or  Sahara  Housing Investment Corporation Ltd. (SHICL). Prima facie refund to investors of Sahara Q Shop is not covered under Hon'ble Supreme Court Order.

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