The Indian government has announced that Rs2,025.75 crore has been disbursed to 1.16mn (million) depositors of the Sahara group of cooperative societies as of 28 January 2025. It includes depositors of Sahara Credit Cooperative Society Ltd, Saharayan Universal Multipurpose Society Ltd, Humara India Credit Cooperative Society Ltd and Stars Multipurpose Cooperative Society Ltd, Amit Shah, the Union minister of cooperation, informed the Lok Sabha.
According to the Union ministry of cooperation, payments of up to Rs50,000 are being made to each verified depositor through Aadhaar-seeded bank accounts. The government has also launched a re-submission portal, effective from 15 November 2023, to address any deficiencies found in applications and allow depositors to rectify errors.
The refunds are being processed transparently and are subject to proper identification and submission of valid proof of identity and deposits, he added.
In his reply, Mr Shah, the minister, reaffirmed the government's commitment to ensuring rightful depositors receive their refunds efficiently.
The ongoing refund process follows a Supreme Court order dated 29 March 2023 in connection with an interlocutory application filed by the ministry of cooperation in case WP (C) No.191/2022 (Pinak Pani Mohanty vs Union of India & Others). The Court directed that Rs5,000 crore be transferred from the 'Sahara-SEBI Refund Account' to the central registrar of cooperative societies (CRCS) for distribution among legitimate depositors.
The disbursement is being carried out under the supervision of justice R Subhash Reddy, a former judge of the Supreme Court and assisted by advocate Gaurav Agarwal, who has been appointed as amicus curiae. The process ensures that funds reach eligible depositors securely and transparently, the government says.
Mr Shah says the authorities have assured that all necessary steps are being taken to ensure that genuine depositors receive their rightful refunds. "The ministry of cooperation continues to monitor and oversee the process, reaffirming its commitment to transparency and accountability. Deposit holders are encouraged to check their application status and address any deficiencies through the dedicated refund portal."
Moneylife Foundation has been tracking the troubles faced by investors of Sahara's various cooperative societies and has also hosted a Telegram group for aggrieved investors to coordinate and collectively find solutions to their problems. The group, which was formed during the pandemic, has over 600 members who regularly post about their experiences and share updates whenever one of them receives a refund. (
Read: Sahara CRCS Refund Portal: A Year of Delays, Many Still Waiting for Payout)
In 2023, the Supreme Court ordered a portion of the funds (Rs5,000 crore) retrieved by the Securities and Exchange Board of India (SEBI) to be transferred to the Union ministry of cooperation to facilitate refunds to the investors. The apex court had ruled that the Rs5,000 crore should be paid to the legitimate depositors of the Sahara group of cooperative societies as soon as possible, but no later than nine months from the date of the ruling. Any remaining funds would then have to be transferred back to the Sahara-SEBI refund account.
As of 31 January 2024, only Rs258.47 crore has been paid to 277,000 applicants out of 12.1mn (million) claims filed by depositors of Sahara group's four cooperative societies through the CRCS portal (
Read: Sahara CRCS Refund: Just 2.77 Lakh out of 1.21 Crore Applicants Received Rs258.47 Crore, Says Govt). However, this data may not be completely accurate as the number of total registrations on the CRCS refund portal is a staggering 16mn (16,038,266) and the number of claims submitted is an equally astounding 34.1mn (34,115,4180), as per a response received to an RTI application. (
Read: Sahara CRCS Refund Portal Registers Claims of Over Rs82,695 Crore, but Pays Only Rs228.77 Crore, Reveals RTI ).
On 31 August 2012, the Supreme Court handed a historic verdict asking SIRECL and SHICL to refund Rs19,400.87 crore and Rs6,380.50 crore, respectively, to investors as the funds were illegally raised through quasi-debentures without regulatory clearance.
These two Sahara group companies collected Rs25,781.37 crore from around 3.07 crore investors through red herring prospectuses (RHP) on optionally fully convertible debentures dated 13 March 2008 and 16 October 2009 of SIRECL and SHICL, respectively.
Following various orders passed by the Supreme Court and the attachment orders from the market regulator, the Sahara group companies deposited an aggregate amount of Rs15,775.50 crore with SEBI as of 31 March 2024.