Centre takes steps to refund Rs 5,000cr to investors of 4 Sahara Group coop societies

In a move that is likely to help crores of small investors awaiting return of their hard-earned savings, the Government of India has started the process to refund Rs 5,000 crore of depositors whose funds are struck in four cooperative societies of Sahara Group.

Launching a 'CRCS-Sahara Refund Portal' to facilitate the refund, Cooperation Minister Amit Shah said: "The process of returning the amount of Rs 5,000 crore to the investors is starting today in a transparent manner on a trial basis. This is beginning of refund of monies to the depositors (of Sahara Group)". He further said after the completion of Rs 5,000 crore payment, another appeal will be made in the Supreme Court to return the amount to the remaining investors. "The portal will initially benefit about one crore depositors," he said. Stressing that spate of scams in past had shaken the confidence of small investors in the credit cooperative societies, Shah said the start of the refund process will help in renewing the confidence of small investors.

The portal has been developed for submission of claims by genuine depositors of Cooperative Societies of Sahara Group - Sahara Credit Cooperative Society Limited, Saharayan Universal Multipurpose Society Limited, Hamara India Credit Cooperative Society Limited and Stars Multipurpose Cooperative Society Limited. Elaborating on the process to be followed by the depositors, Shah said first payment up to Rs 10,000 will be made to one crore investors who had deposited Rs 10,000 or more. He informed that complete data of all the four societies is available online for applying on CRCS-Sahara Refund Portal.

The government had said on March 29 that money will be returned to 10 crore investors of the four cooperative societies within 9 months. The announcement followed a Supreme Court order directing transfer of Rs 5,000 crore from Sahara-Sebi refund account to the Central Registrar of Cooperative Societies (CRCS).

All necessary provisions have been made in this process so that there is no scope for any kind of manipulation or injustice to any genuine investor, he said. "...people who have not made any investments cannot receive any refund in any way from this portal, but those who have invested will receive the refunds for sure," Shah stressed, and appealed to the affected investors to register online through the facility of CSC.

Investor in Sahara Group will have to link his/her Aadhaar card to mobile numbers and bank accounts. "I assure you the money will be deposited into their bank accounts within 45 days," Shah said. He added that now, crores of people are going to receive their hard-earned money, which was stuck due to scams.

Shah said that approximately 1.78 crore small investors, whose money up to Rs 30,000 is stuck, will get their money back and it is a great achievement. The portal has been developed by a subsidiary of IFCI.