Sahara India Latest Refund News 2022

Sahara India Latest Refund News 2022

  • Sahara India Pariwar Overview
  • Sahara India Pariwar Investor Fraud Case
  • Sahara Group Scam Timeline
  • How much money has Sahara India Group already paid to the investors (2020-2021)?
  • Sahara Group’s Take on the Refund Process: Latest News:
  • Sahara India Investors’ Refund Status 2022:
  • Sebi Sahara Refund Online Application Form 2022
  • Sahara India Pariwar Overview

    In 1978, this conglomerate business was founded by Subrata Roy Sahara with its headquarters in Lucknow, Uttar Pradesh, India. Roy was one of the top 10 people listed in India Today’s High and Mighty power list 2012. India today even called him a ‘Treasure Hunter’. The business model of Roy’s company included sub-sectors such as finance, entertainment, infrastructure, healthcare, insurance, retail, education (edunguru) electrical vehicles (Sahara evols), AI, etc. Being a big promoter of sports in India the company sponsored and owned many sports teams. Sahara India also made significant production in the Indian entertainment industry. 

    From having a stake in a Formula One motor racing team to agreeing to buy a controlling stake in New York’s Plaza Hotel, Sahara collected some trust among the giants around the world, as well as it became a household name in India with its title sponsorship for Indian National Cricket Team and Indian National Hockey Team. So what exactly happened that the company now comes under the list of some of the biggest scammers in India? And why does Sahara owe so much money to the public? Here we are to give you the details about the frauds committed by Sahara till 2011 and the latest 2022 news of Sahara India. 

    Sahara India Pariwar Investor Fraud Case

    Where did the Sahara fraud start from, you ask? Let’s dig a little deep. 

    In order to raise funds for the first time through the stock market, a private company requires an Initial Public Offering (IPO). To ask for permission to do so, the company has to submit a Draft Red Herring Prospectus (DRHP) to the Securities and Exchange Board of India (SEBI) [a regulatory body for securities and commodity market in India]. A DRHP is a draft containing all the details related to the company as well as a request for permission to offer company shares to the public. On the basis of the analysis of DRHP then SEBI provides the permission to ask the public to put money in the company stocks. Now, let’s see how Sahara Group got into an ugly war with SEBI, where SEBI claimed Sahara group to be a fraud.

    Sahara Group Scam Timeline

    • On 09th September of 2009, Sahara Prime City (a real-estate venture of Sahara Group) submitted the DRHP, where SEBI analyzed and found a few issues in the manner in which the company was raising funds for Sahara India Real Estate Corporation (SIREC) and Sahara Housing Investment Corporation (SHIC).
    • On the exact dates of 25th December 2009, and 4th January 2010, SEBI also received complaints alleging that SIREC and SHIC were raising funds in the name of bonds: Optionally Fully Convertible Debentures (OFCD) for months. Further investigation revealed that Sahara Group had already raised more than INR 24,000 crores from approximately 2.5-3 crore small and big investors through OFCD. 
    • When SEBI asked for clarification on the matter, Sahara claimed that the bonds were hybrid, and didn’t come under the jurisdiction of SEBI. Sahara added that the Registrar of Companies (ROC) under the Ministry of Corporate Affairs is responsible for such a bond’s governance and before using the bond they had already gotten DRHP approved by ROC itself. 
    • As a matter of fact, the permission to raise money from more than 50 people is supposed to be taken from SEBI, so Sahara’s fundraising that had happened to date was considered illegal. Both the companies involved were then asked to stop raising funds from the public and return the money to investors with 15% interest.  
    • On June 23, 2011, the final order was passed by the regulator, while the group appealed to the Securities Appellate Tribunal. On October 18, 2011, SEBIs orders were confirmed and upheld by the Tribunal, asking the Sahara companies to refund the decided amount to all the investors. 
    • When the Sahara India Group moved to Supreme Court to appeal, the court also passed the order for both the Sahara companies to deposit the outstanding amount with SEBI to all the 2.5 crore+ investors within the time period of 3 weeks by either giving sufficient bank guarantee or attaching properties worth the amount raised through OFCDs.
    • While the group paid the required first installment but failed to pay the other two installments, in the month of February 2014, Subrata Roy Sahara along with two other directors- Ravi Shankar Dubey and Ashok Roy Choudhary got arrested. 
    • On March 4, 2014, Roy and 2 other mentioned directors were sent to high-security Tihar Jail, Delhi. 
    • After staying in jail for approx. 2 years Roy got out of jail on parole in 2016. 

    After so many years of dispute, we all had our questions, but the most important one was: when will Sahara return the investors money? And if you are one of the investors of Sahara groups, how to get a refund in 2022?

    Here we are answering all your questions along with the Sahara Group’s latest news for 2022 that would help you to get clarity over what is the current status of Sahara group investors. 

    How much money has Sahara India Group already paid to the investors (2020-2021)?

    On the occasion of 42nd Foundation Day, Roy said he has always kept intact the tradition of timely payments, but in the last 7 years due to some “undesirable circumstances”, the payments got delayed. 

    He also mentioned that all the assets (mortgaged or sold) have been deposited in a Sebi-Sahara account because of an embargo imposed by the Supreme Court. Roy also said, “Out of this, we cannot use even a single rupee for organizational work or even towards repayment to the esteemed investors,”. 

    “Keeping in mind the directions of the Supreme Court, certain agreements have been signed, which will resolve Sahara’s problems within this year, that is 2020,” Roy said.

    Sahara group deposited INR 15,448.67 crore to the refund account, as on February 1, 2020, and a cheque of INR 41.59 crore crores was also deposited in late January. In terms of applications, SEBI received 19,560 applications in total involving 53,361 bond certificates for an amount of INR 81.3 crore. Accordingly, SEBI has already returned money to 14,146 applicants, involving 34,499 certificates, for an amount of INR 109.86 crore, stated the Minister of State for Finance Anurag Thakur. 

    As the money was supposed to go through SEBI only, there were advertisements put out by SEBI for the investors to file for refunds. The last advertisements were issued in the month of June 2018, letting people know that the last day for receiving refund applications was July 2, 2018, and no claim would be accepted after that. 

    Sahara Group’s Take on the Refund Process: Latest News:

    In this situation in 2020, Roy mentioned in his letter to investors that around INR 23,000 crore was already deposited in the Sebi-Sahara account, but after nearly 9 years of orders, SEBI could only repay a little over INR 129 crores to the investors of both the Sahara companies: Sahara India Real Estate Corporation (SIREC) and Sahara Housing Investment Corporation (SHIC) with the orders of the Supreme Court. 

    In 2021 Sahara Group said that approximately INR 25,000 crores have already been deposited in the Sahara-Sebi account (including interest), and SEBI is “unreasonably holding INR 25,000 crore of Sahara and its investors”.

    Sahara added that SEBI stopped entertaining any refund forms after July 2018, referring to the newspaper advertisements sent out by SEBI. “This huge amount of money is lying unutilized, idle in the banks which is not only hurting the interest of Sahara as a business organization but also impeding the economic growth of our country, especially in these testing times of economic slowdown,” the Sahara Group stated. 

    “In this way, Sahara is providing bread and butter to more than 14 lakh people in their own villages and towns. It is the country’s second-largest human capital after Indian Railways. This amount could have been used by the organization to generate more employment and work and helped the country and therefore its economy,” it added.

    SEBIs annual report for 2020-2021 said that its actions in the case are overseen by Justice (Retd) B.N. Agarwal who is appointed by the Supreme Court in this matter. Also that the details and status reports are provided to the court from time to time. As of March 31, 2021, 22 status reports have been filed by SEBI before the Supreme Court in the Sahara matter. SEBI has also filed an Interlocutory Application dated October 21, 2021, seeking further directions from the Supreme Court in the matter. 

    Sahara India Investors’ Refund Status 2022:

    In the latest update to Sahara scam 2022, on the basis of varied documents, SEBI has finally made refunds for a total of 17,526 bondholders who were eligible for an aggregate amount of 139.07 crores through NEFT/RTGS (to their respective account no. and IFSC codes provided). And further proceedings are also in order with the Supreme Court.

    Different sources have mentioned different actions being taken to make progress in the Sahara refund case, a few of the latest updates on the Sahara India Scam are as follows:

    • BJP MLA Navin Jaiswal raised questions in the state assembly regarding the Sahara India scam. He said that the poor people have invested more than INR 25,000 crores with the Sahara schemes, and are now facing difficulties in being able to get a refund on the same. He demanded to set up a helpline number for the Sahara scheme victims. To which Rameshwar Oraon (Jharkhand state’s finance minister) replied that they are keeping tabs on the situation and are working towards helping the victims. 
    • There is intense pressure on the employees of Sahara India. Many of the Sahara employees and agents met Bokaro MLA and BJP chief whip Branch Narayan to put forward their memorandum. As per the initiation by Narayan, in the past he had written to Prime Minister Narendra Modi, the Union finance minister and chairman of SEBI, telling them about the ordeal faced by the employees of Sahara India. 
    • Pradeep Kumar (a SEBI counsel) told the amount of payments that have already been made to the investors and the application as to the further actions regarding the utilization of the funds has also been filed before the Supreme Court. 
    • SEBI has been asked by the High Court to either show any order of the Supreme Court restraining the use of such funds or ensure the repayment to all the Sahara investors respectively.
    • The High Court in the previous orders also mentioned that the investors whose deposits have matured and didn’t get the refund by Sahara Group may file applications along with their claim papers, where a number of applications have been received. 

    Sebi Sahara Refund Online Application Form 2022

    Details related to names of the investors, addresses, Sahara account numbers, the number of bonds, the amount invested, and the mode of investment (cash, cheque, or draft) are required for the refund. The investors are also to provide photographs, ID proof, bank account details, and their original bond certificates along with the details for the electronic transfer of money to their accounts.

    The proof for marked changes in the addresses or marital status since the time of their investment are also compulsory. SEBI also mentions that Income Tax would be deducted at the source wherever applicable unless a recommended form to claim exemption from deduction of tax at source is received along with a refund application in accordance with the relevant provision of the Income-tax Act.

    SEBI asks the investors to email them directly at sebi@sebi.gov.in for any related queries to their investments. SEBI toll-free number for Sahara refund: 1800 266 7575 or 1800 22 7575. 

    Any further information related to the Sahara scam is yet to come. We update information as it arrives, so stay tuned for more. 

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