SFIO probe into Sahara group of companies underway, says FM Sitharaman

Nirmala Sitharaman. File Pic/PTI

The Serious Fraud Investigation Office (SFIO) is carrying out a detailed probe into the matter related to the Sahara group of companies and it is also looking into the reason behind a sizeable number of investors not coming forward to claim the invested money in the company, Union Finance Minister Nirmala Sitharaman said in Lok Sabha on Monday.

Sitharaman also said the entire affairs of the Sahara group are being monitored by the Supreme Court and the government is acting according to the directives of the apex court.

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"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 said three committees of judges are looking into each of the 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 said according to a 2022 Supreme Court order, a total of 3.07 crore people had invested about Rs 27,000 crore in the Sahara group of companies whose cases come under the Securities and Exchange Board of India (SEBI).

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 October 31, 2018.

The companies are Sahara Housing Investment Corporation Ltd, Sahara Q Shop Unique Products Range Ltd and Sahara Q Gold Mart Ltd.

Further, investigations were ordered against six other group of companies on October 27, 2020.

The minister said there are some cases which come under the regulator SEBI while some are dealt by the Ministry of Cooperation.

"So I want to make it clear that everything is monitored by the Supreme Court," she said.

She said those which come under the SEBI are three entities -- Sahara India Real Estate Cooperation, Sahara Housing Investment Cooperation Ltd and Sahara India Commercial.

Sitharaman said in the SEBI-related three cases, 18 properties of Sahara were attached and if the properties are auctioned, the money will go to the pool to be distributed.

She said after the creation of the Ministry of Cooperation (in 2021), the government had approached the Supreme Court, which gave an order that some amount which is sitting with the SEBI can be given to the Ministry of Cooperation which can then be distributed to cooperatives related entities. These cooperatives were founded by the Sahara.

The minister said the total amount invested in these four cooperatives is Rs 86,673 crore and Justice Subhash Reddy-led panel is looking into the matters related to the four cooperatives of the Sahara.

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 upto 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 -- upto 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.

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