Money stuck in Sahara? Here's how to get refund

In a sign of relief for those 10 crore people whose money was stuck in Sahara, the government has launched Sahara Refund Portal.  People who had invested in Sahara can get their refunds through this portal. Union Home and Cooperation Minister Amit Shah launched the Sahara Refund Portal. But only those people whose investment  has matured will get refund and only those who are investors of Sahara’s four co-operative societies will be able to apply for the refund. These societies are located in Lucknow, Bhopal, Kolkta and Hyderabad. Around 10 crore people’s money is stuck in these societies.

It is estimated that the investors whose money is stuck in Sahara most of them are from UP, Bihar, Jharkhand and MP. Investors have to complete the process related to refund on this portal and submit their claim online. After this, if the claim is found correct, the money will be transferred to the investor’s account. The government aims to complete the refund process in the next 9 months. But what is this matter all about? How did money of so many investors get stuck in these societies? Why did the government have to interfere in this? Let’s get to know.

What’s the matter? 

First of all, these are the four co-operative societies whose investors will get their money back

1. Sahara Credit Co-operative Society Limited
2. Saharayan Universal Multipurpose Society Limited
3. Hamara India Credit Co-operative Society Limited
4. Stars Multipurpose Co-operative Society Limited

About 10 crore people had deposited their hard earned money in these four co-operative societies. The term of investment was complete but the money could not be returned to the investors. People then approached the government after which the Ministry of Cooperation filed an application in the Supreme Court to address the grievances of the investors.

SC order
In March 2023, the Supreme Court directed that Rs 5,000 cr be transferred from the ‘Sahara-SEBI Refund Account’ to the Central Registrar of Cooperative Societies. Now this is the same Rs 5,000 crore which will be returned to the investors. The money will be returned to the investors under the supervision of former Supreme Court judge R Subhash Reddy. Advocate Gaurav Aggarwal will assist Justice Reddy.

An amount of Rs 24,979.67 crore is currently in the Sahara-SEBI refund account. This amount was deposited by the Sahara group in 2012 on the orders of the Supreme Court. The Ministry of Cooperation told the Supreme Court that Rs 2,253 crore was deposited in the SEBI-Sahara account by Credit Cooperative Society Ltd. on behalf of Sahara India Real Estate Corporation Ltd. This money belonged to the investors of co-operative society of Sahara Group. The Ministry of Cooperation had sought help from the Supreme Court to refund the Rs 5,000 crore belonging to the investors of the cooperative societies.

What is SEBI-Sahara Refund Account?

Sahara India Real Estate Corporation Limited and Sahara Housing Investment Corporation Limited had raised money from the market through optional fully convertible debentures. According to SEBI this money that was raised was in violation of rules. In 2011, SEBI Sahara was ordered to return this money. In 2012, Sahara went to the Supreme Court in this matter. The Supreme Court upheld the order of SEBI and Sahara was ordered to return investors’ money with 15 percent interest. Later, Sebi-Sahara refund account was opened to return investors’ money, in which Sahara deposited more than Rs 24,000 crore. Subrata Roy Sahara later had to go to jail in this case.

How to get the refund? What is the process?

Shah while launching the refund portal said that the refund will be received within 45 days of registering on the portal. Initially,  the depositors will get refund up to Rs 10,000. Later the amount will be increased for those who have invested more.  From the Rs 5,000 crore, in the first phase around 1.7 crore investors will get relief. After returning the Rs 5,000 crore, the government will go to court and request to release more funds. Common Service Centers will help depositors to register online on the portal.

For refund, first of all go to mocrefund.crcs.gov.in.  Aadhaar number and mobile number have to be mentioned.  By logging in via OTP and after reading the terms and conditions, you can fill the form. Refund can be claimed only once. Take a printout, sign it paste a photo and then upload it on the portal. Within 30 days, Sahara Society will take action on it  and in next 15 days government officials will process it. The amount will reach your account as soon as it is approved.