Lok Sabha Question No. 961 (UNSTARRED), answered on 2024-07-29
Subject: Refund of Investors Money by Sahara
Ministry: CORPORATE AFFAIRS
Asked by: Shri Abhay Kumar Sinha, Shri Arun Bharti, Shri Sudama Prasad, Shri Ramashankar  Vidharthi Rajbhar, Smt. Joba Majhi

## GOVERNMENT OF INDIA

## MINISTRY OF CORPORATE AFFAIRS

LOK SABHA UN-STARRED QUESTION NO. 961 ANSWERED ON Monday, July 29, 2024 7 Shravan, 1946 (Saka)

## REFUND OF INVESTORS MONEY BY SAHARA

## QUESTION

## 961. Shri Abhay Kumar Sinha:

Shri Arun Bharti:

Shri Sudama Prasad:

Shri Ramashankar Rajbhar:

Smt. Joba Majhi:

## Will the Minister of CORPORATE AFFAIRS be pleased to state:

- (a) whether due to the Sahara-SEBI dispute, the money of lakhs of small investors has remained stuck in Sahara for years and if so, the details  thereof  along  with  the  present  status  of  Sahara  India Company case;
- (b) whether the Government has decided to refund the money stuck in  Sahara, if so, the steps taken by the Government in this regard along with the number of account holders of Sahara India and the quantum of money deposited in the accounts; (c) whether it is true that the maximum refund which can be claimed by Sahara Depositors was capped at Rs. 10,000 irrespective of the investment and if so, the reasons therefor; (d) whether the Government proposes to make payment of Rs. 5,000 crores collected through  the Central Registrar of  Cooperative Societies (CRCS) and if so, the details thereof; (e) whether the Portal launched for the payment of said money has many technical glitches and refund of only Rs. 500 crores has been made so far; and (f)  whether  the  Government  has  any  plan/policy  to  avoid  such
- financial mishaps in the future and if so, the details thereof?

Contd...2…

## \\2\\ ANSWER

Minister of State in the Ministry of Corporate Affairs; Minister of State in the Ministry of Road Transport and Highways.

(Shri Harsh Malhotra)

- (a) to (f): Ministry  vide  order  dated  31.10.2018  has  assigned investigation  u/s  212(1)(a)  &  (c)  of  the  Companies  Act,  2013  to Serious Fraud Investigation Office (SFIO) in following companies:
- a) Sahara Q Shop Unique Products Range Limited (SQSUPRL)
- b) Sahara Q Gold Mart Limited (SQGML)
- c) Sahara Housing Investment Corporation Limited (SHICL)

Ministry has further assigned investigation under Section 212(1) (c) r/w 219 of the Companies Act, 2013 to SFIO vide order dated 27-10-

2020, in following companies:

- a) Aamby Valley Limited
- b) Qing Ambay City Developers Corporation Ltd
- c) Sahara India Commercial Corporation Limited
- d) Sahara Prime City Limited
- e) Sahara India Financial Corporation Limited
- f) Sahara India Real Estate Corporation Limited

Hon'ble  Supreme  Court  vide  Order  dated  31.08.2012  inter -alia directed  Sahara India Real Estate Corporation Limited (SIRECL) and Sahara  Housing  Investment  Corporation  Limited  (SHICL)  and  their promoter-directors (collectively referred to as Saharas) to refund the amount aggregating to Rs 25,781.37 Crores collected from around 3.07  Crores  Optionally  Fully  Convertible  Debenture  holders,  along with interest @ 15% per annum to SEBI from the date of receipt of the subscription  amount  till  the  date  of  repayment,  within  a  period  of three months from 31.08.2018, to be deposited in a Nationalized Bank bearing maximum rate of interest.

Contd…3…

Pursuant  to  various  Orders  passed  by  the  Supreme  Court  and  the attachment Orders of SEBI dated 13.02.2013, an aggregate amount of  Rs.  15,775.50  Crores  (against  the  Principal  Amount  Rupees 25,781.37 Crores) has been realized by SEBI as on 31.03.2024. The amount realized from Saharas are being invested/re-invested in FDs of Nationalized Banks on periodical basis. The total amount invested along with interest as on 31.03.2024 is Rs. 20,894 crores.

SEBI received 19,650 Applications in total involving 53,687 accounts.  On the basis of verifiable documents, SEBI made refunds with respect to 17,526 eligible bondholders involving 48,326 accounts  for  an  aggregate  amount  of  Rupees  138.07  Crores  (i.e. Rupees  70.09  Crores  as  Principal  and  Rupees  67.98  Crores  as  an Interest).

In the I.A.56308 of 2023 filed by Ministry of Cooperation in WP 191 of 2022, the Hon'ble Supreme Court vide order dated March 29, 2023

inter alia directed;

'…….. 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.  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 accordance with the aforesaid Order dated March 29, 2023 of the Hon'ble Supreme Court, an amount of Rs 5000 Crore was transferred Sahara  Refund  Account'  to  the  Central  Registrar  of from  'SEBI -Cooperative Societies on 19.05.2023.

Central Registrar of Cooperative Societies (CRCS) has informed that in reference to the question related to depositors of Sahara Group of Cooperative Societies: -

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 a nd monitoring of Justice R. Subhash Reddy, Former Judge of Hon'ble Supreme Court.

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.

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.

*******