Fraud Investigation Body Undertaking Inquiry On Sahara Group, Says Sitharaman
Sitharaman also said that the Supreme Court is closely overseeing the entire situation with the Sahara group, and the government is following the directives issued by the court.
Union Finance Minister Nirmala Sitharaman reported that the Serious Fraud Investigation Office is conducting a thorough investigation into the Sahara group of companies in a statement to Lok Sabha on Monday.
The office is also examining why a significant number of investors have yet to come forward to reclaim their invested funds.
Sitharaman also said that the Supreme Court is closely overseeing the entire situation with the Sahara group, and the government is following the directives issued by the court.
"It is true that only small investors have come forward to claim the refunds. The SFIO is investigating the entire matter. It is also looking into why all the investors have not come forward to claim the refunds and where are they. The SFIO is going into a detailed analysis of this. We hope that at the end of it more legitimate claimants come and we can give the money," she said during Question Hour.
The minister said the whole picture will be clear and action can be taken after the detailed analysis of the SFIO.
"I want to dispel this thought that the government of India is not doing anything. We are constantly reporting to the Supreme Court. Three panels of retired judges of the Supreme Court are monitoring us. They are approving every claim. Let no one doubt the intent and interests of the central government which is doing its best," she said.
She mentioned that three committees of judges are reviewing each claim related to the Sahara group of companies.
"Most of the small depositors' money has been cleared because their documents are clean as per the three separate standard operating procedures," she said.
Sitharaman noted that, according to a 2022 Supreme Court order, approximately 3.07 crore individuals had invested around Rs 27,000 crore in the Sahara group of companies, which fall under the jurisdiction of the Securities and Exchange Board of India.
She said three advertisements were issued appealing the Sahara investors to come forward to claim refund.
So far, 19,650 people have come forward to claim the refunds. Of these, 17,256 claims were settled while rest of the applicants were told to provide more papers so that their claims can also be settled. As a result, so far Rs 138.07 crore could be given to the claimants, she said.
Sitharaman said the central government cannot do anything on the matters of Sahara group of companies even if it wants to as everything is monitored by the Supreme Court.
"We are constantly reporting to the Supreme Court," she said.
According to the data provided by the Finance Ministry to Parliament in December 2023, probes into the affairs of three Sahara group of companies were handed over to the SFIO on Oct. 31, 2018.
The companies are Sahara Housing Investment Corp., Sahara Q Shop Unique Products Range Ltd. and Sahara Q Gold Mart Ltd.
Further, investigations were ordered against six other group of companies on Oct. 27, 2020.
The minister said there are some cases which come under the regulator SEBI, while some are dealt by the Ministry of Cooperation.
There were 1.21 crore investors in these cooperatives and so far Rs 378 crore could be released after scrutiny of 4.3 lakh depositors. Among them are 1.27 lakh depositors whose claims are up to Rs 10,000, she said.
Sitharaman said another Sahara-linked entity is Pearl Agro Cooperation Ltd., where an estimated amount of Rs 49,000 crore was invested by 5.8 crore investors.
In this case, she said, the number of claimants is 1.5 crore and online process is going on for disbursement of refunds to all those who have made the claim.
Refunds of Rs 1,021 crore have been given to 20.8 lakh claimants, which is up to Rs 19,000 each. A total of 28 lakh investors have made the claims, she said.
The minister said another Supreme Court-appointed panel is looking into this matter and reporting to the court.
"We would like more claimants to come. There is a portal created by the Ministry of Cooperation. Please put your names for those four cooperatives of the Sahara for refunds," she said.
(With Inputs From PTI)
