Subrata Roy, the late chief of the Sahara Group, has once again brought attention to the over ₹25,000 crore lying dormant in the Securities and Exchange Board of India (SEBI) account. His demise has reignited discussions about the long-standing legal battles his group faced in connection with allegations of Ponzi schemes and regulatory violations.
In 2011, SEBI issued directives to Sahara India Real Estate Corporation Ltd (SIREL) and Sahara Housing Investment Corporation Ltd (SHICL) to refund funds raised from nearly 3 crore investors through Optionally Fully Convertible Bonds (OFCDs). The Supreme Court, in 2012, upheld SEBI’s decision, ordering Sahara to deposit an estimated ₹24,000 crore with SEBI for further refunds to investors.
Despite Sahara’s claims of refunding over 95% of investors directly, SEBI’s latest annual report reveals that only ₹138.07 crore has been refunded to investors over 11 years. The specially-opened bank accounts for repayment, however, hold more than ₹25,000 crore.
The refund process has seen slow progress, with just about ₹7 lakh added during the last fiscal year. The balance in SEBI-Sahara refund accounts increased by ₹1,087 crore, reflecting the undistributed funds.
As of March 31, 2023, SEBI had received 19,650 applications involving 53,687 accounts. Refunds were made in 17,526 applications involving 48,326 accounts, totaling ₹138.07 crore, including interest. Some applications were closed due to untraceable records provided by Sahara Group firms.
Under various Supreme Court and SEBI orders, an aggregate amount of ₹15,646.68 crore has been recovered by SEBI as of March 31, 2023. This, along with accrued interest, was deposited in nationalized banks, bringing the total to ₹25,163 crore.
Notably, this amount has steadily increased from ₹24,076 crore in 2022, ₹23,191 crore in 2021, and ₹21,770.70 crore in 2020.
The central government, in August, initiated the process to refund ₹5,000 crore to depositors in four cooperative societies of the Sahara Group. The ‘CRCS-Sahara Refund Portal’ was launched to facilitate the return of funds to approximately 18 lakh registered depositors. In March, following a Supreme Court order, ₹5,000 crore from the Sahara-Sebi refund account was transferred to the Central Registrar of Cooperative Societies (CRCS), aiming to return money to 10 crore investors within nine months.
Subrata Roy’s passing has once again brought attention to the complex web of legal and financial challenges surrounding the Sahara Group, with the fate of the remaining funds in SEBI’s account awaiting resolution.
Sources By Agencies
