On March 29, the Centre announced that it will return money to 10 crore investors of four cooperative societies belonging to the Sahara group within nine months. This move comes after the Supreme Court directed the transfer of ₹5,000 crore from the Sahara-SEBI refund account to the central registrar.
According to an official statement released by the Ministry of Cooperation, the Supreme Court’s historic decision orders the return of deposits to approximately 10 crore investors of four cooperative societies belonging to the Sahara group from the Sahara-SEBI refund account.
The Ministry of Cooperation has stated that Justice Reddy, with the help of Gaurav Agarwal, will oversee the payment process, which is expected to be completed within 9 months.
How SEBI will transfer money to Sahara India Investors?
The payment to the legitimate investors of Sahara Societies will be made through a transparent process. The payment will be deposited directly into the bank accounts of the investors who provide proper proof of their identity and deposit.
In 2011, the Securities and Exchange Board of India (SEBI) instructed Sahara India Real Estate Corporation Ltd (SIRECL) and Sahara Housing Investment Corporation Ltd (SHICL) to return the money they had collected from investors through Optionally Fully Convertible Bonds (OFCD).
SEBI stated that these amounts were collected in violation of SEBI (Disclosure and Investor Protection) Guidelines, 2000, and various regulations of the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2009.
Sahara challenged SEBI’s directive in the Supreme Court. In August 2012, the Supreme Court upheld SEBI’s decision to ask the two firms to return the money collected from investors, along with 15% interest. Following this ruling, Sahara was ordered to deposit Rs 24,000 crore with SEBI for further refund to investors.
The court ordered the transfer of Rs 5000 crore to the Central Register of Cooperative Societies to disburse the amount to legitimate depositors in a transparent manner.
The disbursement process will be overseen by Judge (Ret) R Subhash Reddy and Attorney Gaurav Agarwal, who has been appointed as amicus curiae.
Judge (retired) Subash Reddy will receive Rs 15 lakh per month as fees while Agarwal will receive Rs 5 lakh per month.
Payment to genuine depositors is expected to be made within nine months, with the remaining amount to be deposited back into Sahara-SEBI’s repayment account.
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