Sahara Cooperative Society Deposit Refund: Amit Shah affirms Release of ₹2,314 Crore to 12,97,111 Depositors
4 Cooperative Societies were launched by the Sahara India Pariwar, a prominent figure with a presence in numerous spheres across the country
Amit Shah Lok Sabha announcement – Sahara cooperative deposit return – taxscan
Amit Shah Lok Sabha announcement – Sahara cooperative deposit return – taxscan
The Union Minister of Cooperation Amit Shah has announced the release of ₹2,314.20 crore to 12,97,111 depositors who transacted with the 4 cooperative societies held and operated by Sahara Group. The information was provided in a written reply in the Lok Sabha and later shared via a press release on the Press Information Bureau (PIB) website.
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The Sahara Group, once a prominent business conglomerate, has been embroiled in financial controversies over the past decade. It previously operated in sectors like real estate, media, finance, and hospitality. The refund pertains to four multi-state cooperative societies under the Sahara Group:
1. Sahara Credit Cooperative Society Ltd., Lucknow
2. Saharayn Universal Multipurpose Society Ltd., Bhopal
3. Humara India Credit Cooperative Society Ltd., Kolkata
4. Stars Multipurpose Cooperative Society Ltd., Hyderabad
The cooperative societies had amassed ₹1,13,504 crore in deposits as of March 31, 2023. However, a large number of complaints regarding non-payment of matured deposits, led aggrieved depositors to seek legal recourse.
Understand the tax laws behind big financial rulings
The refund processes had been undertaken following the directives issued by the Supreme Court of India in WP (C) No.191/2022 (Pinak Pani Mohanty vs Union of India & others), ordering the transfer of ₹5,000 crore from the "Sahara-SEBI Refund Account" to the Central Registrar of Cooperative Societies (CRCS) for disbursement to genuine depositors. The court had appointed Justice R. Subhash Reddy, a former Supreme Court judge, along with advocate Gaurav Agarwal, to supervise the refund process.
In compliance with the Supreme Court Directive, the Ministry of Cooperation launched the CRCS-Sahara Refund Portal (https://mocrefund.crcs.gov.in) on July 18, 2023, to facilitate the refund process which is entirely digital and paperless.
Understand the tax laws behind big financial rulings
Depositors were required to provide proof of identity and deposits, and refunds are directly transferred to Aadhaar-linked bank accounts. Initially, the disbursement limit was set at ₹10,000 per depositor, which was later increased to ₹50,000. Additionally, a re-submission portal was launched on November 15, 2023, to allow depositors to correct any deficiencies in their applications. The Supreme Court has extended the deadline for refund disbursement until December 31, 2025.
With ₹2,314.20 crore already disbursed, the government, guided by the Apex Court, aims to expedite the refund process for remaining depositors, offering long-awaited relief to those who had invested their savings in Sahara's cooperative societies.
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