Lok Sabha Question No. 319 (STARRED), answered on 2021-12-20
Subject: Repayment to Investors
Ministry: FINANCE
Asked by: Gajanan Chandrakant Kirtikar

## Government of India Ministry of Finance Department of Economic Affairs

## LOK SABHA

## (SAKA)

## Repayment to Investors

## *319. SHRI GAJANAN KIRTIKAR:

Will the Minister of FINANCE be pleased to state:

- Exchange Board of India (SEBI)-Sahara refund account;
- (b) if s0, the quantum of funds deposited by the Sahara. India   Group  for repayment to investors in respect of optionally fully convertible debentures;
- (c) the number of investors by SEBI and the amount involved therein; repaid
- (d) the timeline for refund to investors by SEBI and return of money to Sahara India in case no investor is left for refund;
- (e) whether the Government is aware that the Sahara India Group has not been able to pay back the investors of other schemes due to embargo placed on them; and
- if sO, the measures being taken to ensure lifting of embargo on the Sahara India Group s0 that the genuine investors do not suffer?

## ANSWER MINISTER OF FINANCE (SMT. NIRMALA SITHARAMAN)

(a) to (f) A statement is laid on the Table of the House.

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Statement referred to in the reply to part (a) of the LOK SABHA Starred Question no *319 raised by Sh. Gajanan Kirtikar due for reply on December, 2021 20th

(a) and (b): In terms of the Supreme Court order dated 31.08.2012 inter-alia directing Sahara India Real Estate Corporation Limited (SIRECL) and Sahara Housing Investment Corporation Limited (SHICL) and their Promoters and Directors (hereinafter referred to as 'Saharas' ) to refund the amounts aggregating to Rs 19,400.87 Crores and Rs. 6,380.50 Crores respectively (total amounting to Rs. 25,781.37 Crores) collected from  around 3.07 Crores investors through Red Herring Prospectuses (RHP) on Optionally Fully Convertible Debentures dated 13.03.2008 and 16.10.2009 of SIRECL and SHICL respectively, along with interest 15% per annum to SEBI from the date of receipt of the subscription amount till the date of repayment; The Saharas have deposited an aggregate amount of Rs.15,485.80 Crores (against the Principal Amount Rs. 25,781.37 Crores) into designated SEBI-Sahara Refund' Account as on November 30,2021.

(c): In response to the various Press Releaseladvertisements, SEBI received 19,644 Applications in total  involving 53,642 Original  Bond  Certificates Pass Books for an aggregate Principal Amount of Rs. 81.70 Crore. On the basis of verifiable documents, SEBI made refunds with respect to 17,526 eligible bondholders involving 48,326 Original Bond Certificates Pass Books for an aggregate amount of Rs. 138.07 Crores (i.e,, Rs 70.09 Crores as Principal and Rs. 67.98 Crores as an Interest) by way of transfer through NEFTMRTGS

(d): In terms of the directions issued from time to time by the Supreme Court and Justice (Retd) B N Agarwal appointed by the Supreme Court in this matter, SEBI issued a Press Release on 28, 2013 and  multiple advertisements during  the months of AugustSeptember 2014 and December 2014 which detailed the application process along with its mechanism to apply for refund  These were made available on the SEBI website and the bondholders of SIRECL and SHICL were also advised to make necessary applications to SEBI for refund of their money. SEBI also issued final advertisements on 26.03.2018 and 19.06.2018 informing the bondholders of SIRECL and SHICL that 02.07.2018 (cut-off date) is the last date for receiving applications for  refund and that no application  would be accepted/ entertained after the cut-off date. May

Till date, SEBI has filed 22 status reports in total before the Supreme Court in this matter: Further, SEBI has also filed an Interlocutory Application dated 21.10.2021 seeking further directions from the Supreme Court in this matter and the same is presently pending before the Supreme Court;

(e) and (f: As regard Sahara India Group not being able to pay back the investors of other schemes, it  informed that of Optionally Fully Convertible Debentures of SIRCEL and SHICL is Rs 25,781.37 Crores against which only Rs.15,485.80 Crores has been deposited in SEBI-Sahara Refund Account and the SEBI has been  facilitating the repayment of principal and interest to the investors who invested in Optionally Fully Convertible Debentures of SIRCEL and SHICL.

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