Lok Sabha Question No. 3034 (UNSTARRED), answered on 2023-08-08
Subject: Refund from Cooperatives
Ministry: COOPERATION
Asked by: Ravneet Singh, Su Thirunavukkarasar

## GOVERNMENT OF INDIA MINISTRY OF COOPERATION

## LOK SABHA UNSTARRED QUESTION NO. 3034 TO BE ANSWERED ON 08/08/2023

## Refund from Cooperatives

## 3034.  SHRI RAVNEET SINGH BITTU: SHRI THIRUNAVUKKARASAR SU:

Will the Minister of COOPERATION (सहकाįरता मंũी) be pleased to state:

(a)  whether  a  significant  number  of  investors  have  lost  their  hard  earned  money  due  to investment in various groups of cooperative societies including that of the Sahara Group; (b)  if  so,  the  details  thereof  along  with  the  total  estimated  loss  of  investors  money  in  such investments till date; (c) whether the Government has taken any steps for return of money to the concerned aggrieved individuals in the country; (d) if so, the details thereof and the timeframe for the return of the entire amount and if not, the reasons therefor; and (e)  whether  the  Government  has  proposed  any  steps  or  to  launch  portals  for  submission  of legitimate claims of the poor depositors and if so, the details thereof?

## ANSWER

## THE MINISTER OF COOPERATION सहकाįरता मंũी (SHRI AMIT SHAH)

(a)  to  (e):  The  Cooperative  Societies  with  objects  not  confined  to  one  State  are  governed  by Entry 44 of the List I - Union List of the Seventh Schedule to the Constitution and provisions of centrally administered Multi-State Co-operative Societies Act, 2002. The Cooperative Societies with objects confined to one State  are governed by  Entry 32 of the  List  II  -  State  List  of  the Seventh Schedule to the Constitution and provisions of respective State  Cooperative Societies Act.

A  multi-State  cooperative  society  registered  under  the  provisions  of  Multi-State  Cooperative Societies (MSCS) Act, 2002 and rules framed thereunder, functions as autonomous cooperative organisations  and  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.

Further, 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. Thereafter, hearings were held between November, 2019 to December, 2020 before the Central Registrar of Cooperative Societies  for  these  societies  and  during  hearing,  it  was  submitted  by  these  societies  that  an amount of  Rs. 86,673 crores has been collected from  around 9.88 crore investors  and out of which Rs. 62,643 Crore has been invested in Aamby Valley Ltd only.

Thereafter, an IA No. 56308/2023 was filed by the Ministry of Cooperation in the matter of WP (C) No. 191/2022 -Pinak Pani Mohanty vs UoI & ors. in which the Hon'ble Supreme Court vide order dated 29.03.2023, inter alia, directed 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

(iii) We direct that the amount be paid to the respective genuine depositors of the Sahara Group of  Cooperative  Societies  out  of  the  aforesaid  amount  of  Rs.  5,000  Crores  at  the earliest,  but  not  later  than  nine  months  from  today.  The  balance  amount  thereafter  be again transferred to the 'Sahara-SEBI Refund Account.'

In compliance of above order, an Online Portal 'CRCS-Sahara Refund portal' has been launched on  18.07.2023  for  the  genuine  depositors  of  4  Multi-State  Cooperative  Societies  of  Sahara Group. The Portal can be accessed through Ministry of Cooperation website https://cooperation.gov.in  and  https://mocrefund.crcs.gov.in.  The  genuine  depositors  of  these Societies  may  login  the portal  and  submit  their  refund  claims  by  filing  online  application  and upload  requisite  documents  i.e.  proof  of  their  deposits  and  claims.  Only  claims  filed  through online  portal  will  be  entertained.  Subject  to  fund  availability,  the  payment  to  the  genuine depositors will be credited in their Aadhar seeded Bank account within 45 days after filing their online claims  and  they  will  be  intimated  the  status  through  SMS/Portal.  The  entire  process  is being supervised and monitored by Justice (Retd.) Shri R. Subhash Reddy.

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