Amit Shah updates Parliament on Sahara refunds: How much has been paid and what's the process to resubmit claims?

The government has disbursed ₹2,025.75 crore to over 11.61 lakh depositors of the Sahara Group of Cooperative Societies through the CRCS-Sahara Refund Portal as of January 28, Union Cooperation Minister Amit Shah informed Parliament on Tuesday.

In a written reply to Lok Sabha, Shah said the refund process is being conducted under the supervision of former Supreme Court judge Justice R. Subhash Reddy, with the assistance of advocate Gaurav Agrawal, appointed as amicus curiae.

The Sahara refund portal, launched by Shah in July 2023, marked the beginning of the process to refund claims worth ₹5,000 crore to millions of small depositors whose investments were virtually wiped out following the collapse of Sahara Group's cooperative societies after a scam two decades ago.

The portal handles claims of genuine depositors, mostly small savers, who lost their money in the scam involving 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).

"Presently, payment only up to ₹50,000 is being disbursed to each genuine depositor against verified claims through their Aadhaar-seeded bank accounts," Shah said, adding that the entire process is digital and paperless.

Prolonged legal battle

The minister noted that the refund process follows the Supreme Court's order dated March 29, 2023, which directed the transfer of ₹5,000 crore from the "Sahara-SEBI Refund Account" to the Central Registrar of Cooperative Societies (CRCS) for disbursal to legitimate depositors.

The Sahara case has undergone a prolonged legal battle, with investors struggling for years to recover their dues. In November 2020, SEBI directed the Sahara Group to deposit ₹62,600 crore, accounting for interest accrued on ₹25,700 crore since 2012.

In June 2022, the financial regulator imposed a ₹12 crore penalty on two Sahara companies, and in December of the same year, it ordered the attachment of the group's demat accounts and those of its founder Subrata Roy for non-compliance.

The Central Registrar of Cooperative Societies had also ordered the four cooperative societies to stop accepting deposits and repay depositors. However, the Sahara Group could not honour these repayment orders due to a lack of funds.

Resubmitting claims

Shah mentioned that depositors with deficiencies in their applications are being notified to resubmit their claims through a re-submission portal launched on November 15, 2023.

“The Ministry is taking all possible steps for payment to the genuine depositors of the Sahara Group of Cooperative Societies,” he added.