Investors of 4 Sahara group's co-op societies to get Rs 5,000 cr refund  

The government on Wednesday said money will be returned to 10 crore investors of 4 cooperative societies of Sahara group within 9 months following a Supreme Court order directing transfer of Rs 5,000 crore from Sahara-SEBI refund account to the Central Registrar.

The Ministry of Cooperation said in a statement said that the Supreme Court, while giving a historic decision, ordered return of deposits of about 10 crore investors of 4 cooperative societies of Sahara group from the Sahara-SEBI refund account. This payment will be made through a transparent process to valid investors of Sahara Societies through their bank accounts on providing proof of their proper identity and deposit.

The Centre had sought money from the Sahara-SEBI escrow account that was formed after the top court in August 2012 directed two Sahara firms - Sahara India Real Estate Corporation Limited (SIRECL) and Sahara Housing India Corporation Limited (SHICL) - to refund investors.

Earlier in the day, the apex court allowed a plea by the Centre seeking allocation of Rs 5,000 crore, out of Rs 24,000 crore deposited by the Sahara group with market regulator Sebi, to repay depositors of the cooperative societies.

The direction came on an application filed by the Centre in a PIL by a person, named Pinak Pani Mohanty, who sought a direction to pay the amount to the depositors who invested in several chit fund companies and Sahara credit firms.

A bench of Justices M R Shah and C T Ravikumar said the amount shall be disbursed to depositors duped by the Sahara group of cooperative societies. The bench noted that the amount was lying in the "Sahara-SEBI Refund Account" unutilised.

The entire process will be monitored by former apex court judge Justice R Subhash Reddy, the bench said. Justice Reddy, with the assistance of Gaurav Agarwal, will complete the payment process in 9 months, the ministry said. Agarwal has been appointed as amicus curiae to assist Justice Reddy as well as the Central Registrar of Cooperative Societies.

The apex court said the prayer sought in the present application seems to be reasonable and which shall be in the larger public interest and interest of the genuine depositors of the Sahara Group of Cooperative Societies.

"Out of the total amount of Rs. 24,979.67 crore lying in the 'Sahara-SEBI Refund Account', Rs. 5000 crore be transferred to the Central Registrar of Cooperative Societies, who, in turn, shall disburse the same against the legitimate dues of the depositors of the Sahara Group of Cooperative Societies, which shall be paid to the genuine depositors in the most transparent manner and on proper identification," the bench said.

"The manner and modalities for making the payment is to be worked out by the Central Registrar of Cooperative Societies in consultation with Justice Reddy and Agarwal. "Rs.15 lakhs per month be paid to Justice R Subhash Reddy, Former Judge of this Court and Rs. five lakhs per month be paid to Gaurav Agarwal, learned Amicus Curiae towards their honorarium," the bench said.

The apex court further directed that the amount be paid to the respective genuine depositors of the Sahara Group of Cooperative Societies not later than nine months from today. The balance amount thereafter will be again transferred to the Sahara-SEBI refund account, it said.

The Centre had sought money from the SEBI-Sahara Sahara-Sebi escrow account that was formed after the top court in August 2012 directed two Sahara firms -- Sahara India Real Estate Corporation Limited (SIRECL) and Sahara Housing India Corporation Limited (SHICL) - to refund investors.