PMO asks MCA to look into Sahara co-op society issue

The Prime Minister’s Office (PMO) has asked the ministry of corporate affairs (MCA) to look into the matters concerning Sahara Credit Co-operative Society. The MCA, in turn, has asked the registrar of co-op societies, Lucknow, to look into the issue and take an appropriate action.

The PMO’s directive comes on the back of a letter written by Mumbai-based investors’ group, Investors and Consumer Guidance Society (ICGS), last year alleging the Sahara Group was mobilising deposits without going through the regulatory rigours of any central agency.

The October 2011-letter by ICGS was directed to the prime minister, along with the finance minister, minister for corporate affairs and the Reserve Bank of India (RBI) governor.

An email sent to the Sahara Group spokesperson seeking response on this issue did not elicit any response.

Last week, RBI had said it does not regulate or supervise the functioning of co-operative credit societies.

“It is observed that your complaint pertains to the functioning of Sahara Credit Co-operative Society, which is a co-operative credit society. We advise that Reserve Bank of India (Urban Banks Department) does not regulate and/or supervise the functioning of co-operative credit societies,” a senior RBI official had said in an e-mail response to the complaint.

In the complaint, the investor group had said, “Sahara Group is now collecting deposits in the name of Sahara Credit Co-operative Society Ltd under three schemes, namely Sahara ‘A’ Select, Sahara U Golden and Sahara E Shine.”