Lok Sabha Question No. 114 (STARRED), answered on 2024-07-30
Subject: Refund Status of Investors in Sahara Cooperatives
Ministry: COOPERATION
Asked by: Shri Rajeev Rai, Shri Sudama Prasad

## GOVERNMENT OF INDIA MINISTRY OF COOPERATION

## LOK SABHA STARRED QUESTION NO. 114 TO BE ANSWERED ON 30/07/2024

## Refund Status of Investors in Sahara Cooperatives

## *114     SHRI RAJEEV RAI: SHRI SUDAMA PRASAD:

Will the Minister of COOPERATION ( सहकारिता मंत्री ) be pleased to state:

- (a) whether the Government is aware that lakhs of investors who deposited their hard earning to Sahara Cooperatives are waiting for return of their investments for the last 4-5 years, if so, the details of number of people/investors and amount held by these societies thereof, Statewise;
- (b)  whether the Government has initiated refund to small investors only up to Rs. 10,000/ through Sahara Refund Portal since July, 2023 and if so, the reasons for applying this cap;
- (c)  whether  refund  upto  Rs.  10,000/-  has  been  made  to  all  investors,  if  so,  the  number  of investors who have received their money so far and if not, the reasons therefor;
- (d) whether the Government/SEBI is contemplating fixing of any timeline to enable full refund to all these investors in a fair and transparent manner and if so, the details thereof and if not, the reasons therefor; and
- (e) whether the Government has any plan/policy to avoid such financial irregularities in the future and if so, the details thereof?

## ANSWER

## THE MINISTER OF COOPERATION सहकारिता मंत्री (SHRI AMIT SHAH)

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

## STATEMENT REFERRED TO IN REPLY TO PARTS (a) TO (e) IN RESPECT OF LOK SABHA STARRED QUESTION NO. 114 'REFUND STATUS OF INVESTORS IN  SAHARA  COOPERATIVES'  ASKED  BY  SHRI  RAJEEV  RAI  AND  SHRI SUDAMA PRASAD, HON'BLE MEMBERS OF PARLIAMENT DUE FOR REPLY ON 30 TH  JULY, 2024

(a) to (d): A cooperative society registered under the provisions of Multi-State Cooperative Societies  (MSCS)  Act,  2002  and  rules  framed  thereunder,  functions  as  an  autonomous cooperative organisation and is accountable to their members. As per the provisions of Section 49  of  the  MSCS Act,  2002,  the  business  matters  such  as  to  admit  members,  to  accept  the deposits and investing the same and staff matters including payment of salary to them, etc. fall under the powers and functions of the board of the Society and the day-to-day management of the Society fall under the powers and functions of the Chief Executive of the Society as per the provisions of Section 52 of the MSCS Act, 2002.

A very large number of complaints were received from the depositors of 4 Sahara Group of Cooperative Societies namely, Sahara Credit Cooperative Society Ltd., Lucknow, Saharayan Universal Multipurpose Society Ltd., Bhopal, Humara India Credit Cooperative Society Ltd., Kolkata  and  Stars  Multipurpose  Cooperative  Society  Ltd.,  Hyderabad.  Further,  details  of number  of  people/investors  and  amount  held  by  these  societies  are  not  required  to  be maintained by the Ministry of Cooperation and also not available in the Ministry.

On an Interlocutory Application No. 56308/2023, filed by the Ministry of Cooperation in  the  matter  of  WP  (C)  No.  191/2022  -Pinak  Pani  Mohanty  vs  UoI  &  ors.,  the  Hon'ble Supreme Court vide order dated 29.03.2023, inter alia, ordered that:

'(i) Out of the total amount of Rs. 24,979.67 Crores lying in the 'Sahara-SEBI Refund Account',  Rs.  5000  Crores  be  transferred  to  the  Central  Registrar  of  Cooperative Societies,  who,  in  turn,  shall  disburse  the  same  against  the  legitimate  dues  of  the depositors of the Sahara Group of Cooperative Societies, which shall be paid to the genuine depositors in the most transparent manner and on proper identification and on submitting proof of their deposits and proof of their claims and to be deposited in their respective bank accounts directly.

(ii) The disbursement shall be supervised and monitored by Justice R. Subhash Reddy, Former Judge of this Court with the able assistance of Shri Gaurav Agarwal, learned Advocate, who is appointed as Amicus Curiae to assist Justice R. Subhash Reddy as well as the Central Registrar of Cooperative Societies in disbursing the amount to the genuine depositors of the Sahara Group of Cooperative Societies. The manner and modalities for making the payment is to be worked out by the Central Registrar of Cooperative Societies in  consultation with Justice R. Subhash Reddy, Former Judge of this Court and Shri Gaurav Agarwal, learned Advocate.'

In  compliance  of  the  Hon'ble  Supreme  Court's  Order  dated  29.03.2023,  an  Online Portal  'CRCS-Sahara  refund  portal'  https://mocrefund.crcs.gov.in    has  been  launched  on 18.07.2023 for submission of claims by the genuine depositors of four Multi-State Cooperative

Societies  of  Sahara  Group,  namely;  Sahara  Credit  Cooperative  Society  Ltd.,  Lucknow, Saharayn  Universal  Multipurpose  Society  Ltd.,  Bhopal,  Humara  India  Credit  Cooperative Society Ltd., Kolkata and Stars Multipurpose Cooperative Society Ltd., Hyderabad for refund of their legitimate deposits. Entire process of disbursement is digital and paperless and is being carried out under the supervision and monitoring of Justice R. Subhash Reddy, Former Judge of Hon'ble Supreme Court with the assistance of Shri Gaurav Agrawal, Amicus Curiae.

Applications  received  on  the  Portal  are  being  processed  in  transparent  manner,  on proper identification and on submitting proof of their identity and deposits. The payment is being deposited directly in Aadhaar seeded bank account of the genuine depositors. Presently, payment upto Rs.10,000/- is being disbursed to each genuine depositor of the Sahara Group of Cooperative Societies against all his verified claims through Aadhaar seeded Bank account after submitting proof of deposits and proof of claims. In case of deficiencies found in the application,  opportunity  is  given  to  the  applicant  for  resubmitting  the  application  after rectifying the deficiencies on the resubmission portal (https://mocresubmit.crcs.gov.in)

So far,  an  amount  of  Rs.  369.91  Crore  has  been  released  to  4,29,166  depositors  of Sahara Group of Cooperative Societies through the portal.

Hon'ble Supreme Court has granted extension till 31.12.2024 for implementation of Supreme Court order dated 29.03.2023.

(e):  The  Multi-State  Cooperative  Societies  (MSCS)  Act,  2002  has  been  amended  and implemented  with  effect  from  03.08.2023  to  bring  the  Act  in  conformity  with  the  97th Constitutional Amendment and also to make reforms to strengthen democratic member control, protect members' interest, improve governance and enhance transparency. The office of Central Registrar  is  also  computerized  to  strengthen  the  monitoring  of  multi-State  cooperative societies.

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