Supreme Court orders Rs 5,000 crore disbursal to Sahara Group depositors by December 2026
Supreme Court orders Rs 5,000 crore disbursal to Sahara Group depositors by December 2026
“Sahara refund process monitored by former Supreme Court judge to ensure transparency”
The ongoing legal proceedings surrounding the Sahara Group's liabilities to its depositors took a significant step forward on Friday, as the Supreme Court of India issued a crucial order regarding the disbursal of funds held in the SEBI-Sahara Refund Account. This article delves into the latest developments, shedding light on the court's decision, the extended disbursal timeline, and the steps involved in ensuring that the funds reach the rightful depositors.
The SEBI-Sahara Refund Account and Depositor Claims
The Sahara Group has been at the centre of a prolonged legal battle since 2012, after two of its key entities—Sahara India Real Estate Corporation Limited and Sahara Housing Investment Corporation Limited —were ordered by the Supreme Court to refund money to investors. The funds for this purpose were subsequently deposited into a SEBI-Sahara Refund Account managed by the Securities and Exchange Board of India.
The total amount deposited by the Sahara Group exceeded Rs 24,000 crore, with a significant portion earmarked for the repayment of dues to investors associated with the Sahara Group of Cooperative Societies. In March 2023, the Supreme Court had already authorized an allocation of Rs 5,000 crore from this account to be disbursed to the eligible depositors.
Key Developments: Recent Supreme Court Ruling
On Friday, a bench of Justices Surya Kant and Joymalya Bagchi ruled in favor of the continued disbursal process. The Centre had filed an application seeking the allocation of the remaining funds to repay the depositors of the Sahara Group. This application was granted, and the court ordered that the Rs 5,000 crore, previously allocated in 2023, be disbursed to the legitimate claimants.
Extension of Disbursal Deadline
An important aspect of the ruling was the extension of the disbursal deadline from December 31, 2025, to December 31, 2026. This extension was granted to ensure that all outstanding claims are properly processed and paid out. The extended timeline will accommodate the growing number of claims filed by investors, allowing ample time for scrutiny and verification.
Disbursement Process and Supervision
The court also emphasized that the Rs 5,000 crore would be transferred from the SEBI-Sahara Refund Account to the Central Registrar of Cooperative Societies. This body will oversee the distribution of funds to the genuine depositors, ensuring that the amounts are properly scrutinized before being disbursed. Importantly, the court has stipulated that the disbursal process must occur under the close supervision of former Supreme Court Judge, R. Subhash Reddy. In March 2023, the court had appointed Judge Reddy to monitor the entire refund process, with the assistance of senior advocate Gaurav Agarwal, who serves as amicus curiae. This oversight is designed to safeguard the integrity of the refund process and ensure that only legitimate claims are honoured.
Current Status of Claims and Disbursements
As of the latest data provided by the Centre, the total amount claimed by depositors has reached a staggering Rs 1,13,504.124 crore. These claims come from an estimated 5.43 crore investors, with 26,25,090 genuine depositors having already received refunds totalling Rs 5,053.01 crore. Furthermore, an additional 13,34,994 investors have submitted claims through the designated web portal, and their claims are currently being processed. These new claims amount to Rs 27,849.95 crore. If this trend continues, the Centre estimates that up to 32 lakh additional claimants may come forward by the revised deadline of December 2026.
Implications for Sahara Group Investors
The court’s latest ruling marks an important milestone in the long-running legal saga. For the depositors who invested their hard-earned money in the Sahara Group's various schemes, this decision brings hope that they will eventually receive the refunds they are owed. The extended timeline and the oversight mechanisms in place offer a level of reassurance that the disbursal process will be carried out fairly and transparently. However, the continuing scrutiny of claims and the large volume of pending refunds underscore the complexity of this case. It highlights the need for efficient and rigorous processes to ensure that the legitimate depositors are not left out or shortchanged.
The Role of SEBI and the Escrow Account
The SEBI-Sahara escrow account, which was set up after the 2012 Supreme Court directive, has played a pivotal role in facilitating the refund process. This account was designed to manage the funds deposited by the Sahara Group, and its role has been central to ensuring that the refunds are distributed according to the Supreme Court’s orders. The Court's emphasis on maintaining stringent supervision over the disbursal process highlights the importance of transparency and accountability, especially given the significant sums involved. The presence of an independent monitor, in the form of Judge Reddy, serves as a safeguard against any potential misuse or misallocation of funds.
Looking Ahead: The Road to Full Refunds
While the latest ruling offers a positive step towards resolving the long-standing issue of Sahara Group’s investor refunds, there is still much to be done. The Court has made it clear that the disbursal process will continue under close supervision and that the Centre will remain actively involved in overseeing the claims procedure.
With the extended deadline of December 2026, it is expected that the final stages of the disbursement will be completed, addressing the outstanding claims and ensuring that the depositors receive the justice they have long been waiting for. It remains to be seen how many more investors will file claims, but with an estimated 32 lakh additional claims expected, the full resolution of the matter is likely to take some more time.
The Supreme Court's recent order marks a pivotal moment in the Sahara Group’s ongoing efforts to compensate its investors. With the allocation of Rs 5,000 crore and the extension of the disbursal deadline, the Court has reaffirmed its commitment to ensuring that the rights of depositors are upheld. The supervision of former Justice R. Subhash Reddy and the involvement of the Central Registrar of Cooperative Societies offer assurances that the refund process will proceed with integrity. As the disbursal continues, depositors can look forward to a fairer and more transparent resolution, with the ultimate aim of providing them with the long-awaited refunds.
