Over Rs 2,000 cr distributed to 1.16 mn Sahara Group depositors: Amit Shah

Union Home Amit Shah said that the refunds are being processed with full transparency, contingent on proper identification and submission of valid proof of identity and deposits

A total of Rs 2,025.75 crore has been distributed to 1.16 million depositors of the Sahara Group of Cooperative Societies as of January 28, 2025, Union Home and Cooperation Minister Amit Shah informed the Lok Sabha on Tuesday.

 

Shah explained that the disbursement process is conducted digitally via a dedicated website. He said, “The entire process of disbursement is digital... carried out under the supervision of Justice R Subhash Reddy, Former Judge of the Hon’ble Supreme Court with the assistance of Shri Gaurav Agrawal, Amicus Curiae.”

 

He further said, “Applications are being processed in a transparent manner, requiring proper identification and proof of both identity and deposits. At present, payments up to Rs 50,000 are being disbursed to each verified depositor of the Sahara Group of Cooperative Societies through Aadhaar-linked bank accounts.”

 

The government introduced a re-submission portal in November 2023 to enable depositors to address any issues in their applications and make necessary corrections. Refunds are being processed with full transparency, contingent on proper identification and submission of valid proof of identity and deposits, as per the government’s guidelines.

 

In his statement, Shah emphasised the government’s ongoing commitment to ensuring that rightful depositors receive their refunds promptly.

 

This refund process is based on a Supreme Court ruling from 29 March 2023 concerning an interlocutory application filed by the Ministry of Cooperation in the case Pinak Pani Mohanty vs Union of India & Others. The court instructed the transfer of Rs 5,000 crore from the ‘Sahara-SEBI Refund Account’ to the Central Registrar of Cooperative Societies (CRCS) for distribution among eligible depositors.

 

The disbursement is overseen by Justice R Subhash Reddy, former Supreme Court judge, with support from advocate Gaurav Agarwal, appointed as amicus curiae. This ensures secure and transparent fund distribution to qualified depositors, as stated by the government.

 

Shah assured that all necessary measures are being taken to ensure legitimate depositors receive their refunds. He said that the Ministry of Cooperation continues to monitor and supervise the refund process, reinforcing its dedication to transparency and accountability. Depositors are encouraged to check their application status and rectify any issues via the dedicated refund portal.

 

The Moneylife Foundation has been monitoring the challenges faced by investors in Sahara’s various cooperative societies and has created a Telegram group to help affected investors share experiences and solutions. The group, formed during the pandemic, has over 600 members who provide updates whenever a refund is processed.

 

In 2023, the Supreme Court directed that part of the funds (Rs 5,000 crore) recovered by the Securities and Exchange Board of India (Sebi) be transferred to the Union Ministry of Cooperation for refund purposes. The court ruled that these funds should be distributed to legitimate depositors of Sahara cooperative societies within nine months of the ruling, with any remaining funds being returned to the Sahara-Sebi refund account.

 

As of 31 January 2024, Rs 258.47 crore had been distributed to 277,000 applicants out of 12.1 million claims filed by Sahara group depositors via the CRCS portal.

 

[With agency inputs]