Supreme Court orders to pay Rs.5,000 crore from Sahara-SEBI fund to depositors; extends deadline to 2026 end
Supreme Court orders to pay Rs.5,000 crore from Sahara-SEBI fund to depositors; extends deadline to 2026 end
It cited the March 2023 order, noting that Rs.24,979.67 crores were lying unutilized in the Refund Account
The Supreme Court has allowed the fresh disbursal of Rs.5,000 crores from the funds deposited by the Sahara Group with the Securities and Exchange Board of India (SEBI) to repay dues of depositors in the Sahara Group of Cooperative Societies.
A bench of Justice Surya Kant and Justice Joymalya Bagchi passed the order after hearing Solicitor General Tushar Mehta.
The court also gave an extension for the release of payments till 31 December 2026, covering amounts under the March 2023 order and the latest verdict.
When SEBI’s counsel sought a few days to work on the instructions, the judges clarified that the order was not a consent. The court was unconvinced about his request that the order be kept on hold.
The bench cited the March 2023 order, wherein a coordinate bench had similarly directed release of Rs.5,000 crores, noting that Rs.24,979.67 crores were lying unutilized in the Sahara-SEBI Refund Account.
Thus, the court ordered the transfer of money from the Refund Account to the Central Registrar of Cooperative Societies, which would disburse it to the depositors.
The transfer must be completed within a week, under the supervision of former Supreme Court judge, Justice R Subhash Reddy, in accordance with the March 2023 order.
The apex court’s directions came in response to an application filed by the Government of India in a PIL by Pinak Pani Mohanty, who sought directions for payment to depositors invested in Sahara credit firms and chit fund companies.
The application highlighted that the disbursal of the previously released Rs.5,000 crores was facilitated through web portals where genuine investors could file claims, using the Standard Operating Procedures (SOPs) for identification, verification, and payment.
The exercise was carried out under the supervision of Justice Reddy, assisted by Senior Advocate Gaurav Agarwal as amicus curiae.
The government had pointed out that the earlier disbursed amount could not be released to depositors within the prescribed timeline, leading to the accrual of interest.
Meanwhile, claims of Rs.1,13,504.124 crores have been filed by 5.43 crore investors. And refunds of Rs.5,053.01 crores have been issued to 26,25,090 genuine depositors.
Additionally, 3,34,994 more investors have filed claims of Rs.27,849.95 crores that remain at various stages of scrutiny. By 2026, over 32 lakhs more investors could file claims.
