After the death of Subrata Roy, investors paid attention to their money, the amount was deposited with SEBI
Sahara India founder Subrata Roy passed away in Mumbai last night. After his demise, questions are arising in the minds of investors as to what will happen to their investment amount now. Sahara Refund Portal was launched in the month of August this year. Investors were getting their money back through this portal. Read the full news...
After the demise of Sahara Group Chief Subrata Roy, the attention of investors has again come back to their savings. Subrata Roy died on Tuesday night at the age of 75. He was suffering from illness for a long time. Subrata Roy has been accused of several regulatory and legal violations at Sahara Group. However, Sahara Group had denied these allegations. Subrata Roy had to go to jail after the Supreme Court's decision in 2012. He came out of jail on parole in 2016.
In 2011, capital markets regulator SEBI banned two Sahara group companies – Sahara India Real Estate Corporation Limited (SIREL) and Sahara Housing Investment Corporation Limited (SHICL), alternatively known as some of the funds raised from investors through certain bonds. Ordered to return.
The order came after the regulator ruled that the two companies had raised funds in violation of its rules and regulations. The Supreme Court on August 31, 2012, upheld SEBI's directions ordering both companies to refund the amount to investors along with 15 percent interest.
After this order, Sahara Group companies claimed that they had already returned 95 percent of the amount to the investors. Whereas, SEBI and the court had ordered that Sahara Group should deposit Rs 24,000 crore to SEBI.
According to SEBI's annual report, refunds of Rs 138.07 crore were issued to investors of two Sahara Group companies in 11 years. Meanwhile, the amount deposited in bank accounts specially opened for refund has increased to more than Rs 25,000 crore. The total amount refunded by SEBI increased by nearly Rs 7 lakh during the last financial year 2022-23, while the balance in the SEBI-Sahara refund account increased by Rs 1,087 crore.
According to the annual report, SEBI received 19,650 applications related to 53,687 accounts till March 31, 2023. Of these, refunds have been made for 17,526 applications involving 48,326 accounts for a total amount of Rs 138.07 crore, which also includes an interest amount of Rs 67.98 crore.
Some applications were closed due to missing records in the data released by the companies. In its last update, SEBI had reported the total amount related to 17,526 applications as of March 31, 2022, to be Rs 138 crore.
Apart from this, SEBI said that under the orders passed by the Supreme Court, a total amount of Rs 15,646.68 crore has been recovered till March 31, 2023.
Meanwhile, the central government in August started the process of returning Rs 5,000 crore to investors stuck in four cooperative societies of Sahara Group. Earlier, Cooperation Minister Amit Shah had launched the 'CRCS-Sahara Refund Portal' in July to facilitate the return of money to investors. About 18 lakh depositors have been registered on this portal.
In March, the government announced that money would be returned to 10 crore investors of four cooperative societies within 9 months. The announcement came after the Supreme Court ordered the transfer of Rs 5,000 crore from the Sahara-SEBI refund account to the Central Registrar of Cooperative Societies (CRCS).
