21-Nov-2023
2 mins read
The Government of India is currently examining the legal aspects of transferring unclaimed funds, amounting to over Rs 25,000 crore, from the Sahara-Sebi Refund Account to the Consolidated Fund of India. This move is prompted by the recent demise of Sahara Group founder Subrata Roy and is aimed at addressing the complexities surrounding the funds and ensuring potential reimbursement for investors.
Government’s Investigation
In the wake of Subrata Roy’s demise, the government is actively investigating the possibility of transferring unclaimed funds to the Consolidated Fund of India. The decision is expected to incorporate provisions that facilitate future claims from investors who may emerge after the transfer. This step is crucial in light of the challenges faced by the Sahara Group and the need to streamline the refund process for affected investors.
Recent Developments
Subrata Roy, the visionary leader behind the Sahara Group, passed away at the age of 75 due to cardiorespiratory arrest following an extended illness. This development has accelerated the government’s scrutiny of the unclaimed funds and the subsequent actions needed to address the financial complexities associated with the Sahara case.
Financial Overview
As of March 31, the total amount recovered from the Sahara Group and deposited in state-run banks stands at Rs 25,163 crore. A significant portion of this amount, Rs 138 crore, has already been disbursed to 17,526 applications with 48,326 accounts. To address legal debts, a transfer of Rs 5,000 crore was made to the Central Registrar of Cooperative Societies, benefiting legitimate depositors.
Subrata Roy’s Legacy and Challenges
Subrata Roy, a prominent figure in Indian business, faced challenges starting in 2010 when the Securities and Exchange Board of India (SEBI) directed two Sahara entities to cease raising funds through equity markets. The troubles escalated in 2014 when Roy, facing a contempt case for his companies’ failure to return over Rs 20,000 crore to investors, was taken into custody. Despite these challenges, Sahara, known for sponsoring the Indian cricket team and holding prestigious properties worldwide, has left a lasting legacy in Indian business.
Streamlining the Refund Process
To enhance the efficiency of the refund process, Home Minister Amit Shah established a dedicated portal for Sahara depositors. This initiative aims to provide a seamless platform for investors to navigate and facilitate the refund process, ensuring that rightful claimants receive their dues.
In conclusion, the government’s exploration of transferring unclaimed funds from the Sahara-Sebi Refund Account to the Consolidated Fund of India marks a significant development in addressing the complexities surrounding the Sahara case. The potential allocation of these funds for public welfare adds a positive dimension to this decision, turning a challenging situation into an opportunity for societal benefit.