Sahara Money Refund: Sahara India chief Subrata Roy (Subrata Roy) after his death, the government is exploring the legality of transferring the unclaimed money lying in the Sahara-SEBI refund account to the Consolidated Fund of India. According to the ET report, Rs 25,163 crore deposited in banks was recovered from Sahara Group after payments were made to some defaulters. Officials associated with the case say that the money is lying in a special account opened in banks to repay Sahara’s investors. The money is still lying in the deposit refund account with SEBI due to not finding eligible investors to take the money deposited in the accounts in 11 years. Now after the death of the Sahara chief, the money deposited in the central government accounts will be transferred to the Consolidated Fund of India (Government of India).Consolidated Fund Of India) is considering putting in. However, the legal process for this is still being considered. After this, after refunding the money to the investors, if the money is left then the government can spend it for the treatment of poor people coming to the hospital.
What will be the impact on the market?
If the Central Government, after completing the legal process, includes the entire Sahara money in the Consolidated Fund, then it will have a big impact on the Indian economy. This will lead to a corresponding decline in the amount of money the Center needs to borrow. However, this will not have a direct impact on government bonds. In the financial year 2023-24, the Center has issued bonds worth Rs 1.45 lakh crore on an average monthly basis in the last three months. The government is going to sell bonds worth Rs 1.29 lakh crore in November. That means an average of thirty thousand crore rupees per month on a weekly basis. In such a situation the question arises that why does the government borrow? To understand it in simple terms, the central and state governments borrow money to bridge their fiscal deficit, or the shortfall between their revenue and their expenditure. Borrowing is done by issuing bonds which are largely bought by institutional investors such as banks, mutual funds, insurance companies, foreign portfolio investors and provident funds. There is also a provision for retail investors to buy government bonds, although their participation is less so far.
Money is being returned under the supervision of Supreme Court
In 2011, SEBI had ordered Sahara India Real Estate Corporation Limited (SIREL) and Sahara Housing Investment Corporation Limited (SHICL) to return the investors’ money. In its order, the institute had alleged that both the companies had raised funds in violation of rules and regulations. Subsequently, after a lengthy legal process, the Supreme Court took a tough stance towards Sahara, upheld the SEBI order and ordered the return of the money with 15 percent interest. For this, an order was given to deposit about Rs 24000 crore with SEBI. During this time, the company has been continuously saying that it has already paid more than 95 percent of the investors directly. According to the report, SEBI returned Rs 138.07 crore to investors of two Sahara Group companies in 11 years.
How many investors applied for refund?
SEBI received 19,650 applications related to 53,687 accounts till March 31, 2023. Of these, a total amount of Rs 138.07 crore was returned for 17,526 applications related to 48,326 accounts, which also includes interest amount of Rs 67.98 crore. Meanwhile, to provide convenience to the investors, a portal was launched by the Central Government to return the money. The government is refunding investors’ money through Central Registrar of Co-operative Societies (CRCS) – Sahara Refund Portal Active. Through this the government will return crores of rupees to the investors. At present, Sahara Credit Cooperative Society Ltd., Saharayan Universal Multipurpose Society Ltd., Humara India Credit Cooperative Society Ltd. and STARS are operated by the government. The money of the investors of Stars Multipurpose Cooperative Society Ltd is being refunded through the portal.