Supreme Court Allows Disbursal Of Rs 5000 Crores From SEBI-Sahara Fund To Depositors Of Sahara Group

The Supreme Court has allowed an application to allocate Rs. 5,000 crores out of Rs. 24,979 crores deposited by the Sahara group with the Securities and Exchange Board of India (SEBI) to repay the legitimate dues of the depositors of the Sahara Group of Cooperatives Society.

The Bench of Justice M.R. Shah and Justice C.T. Ravikumar observed that “...the amount lying in the “Sahara-SEBI Refund Account” is lying unutilized and the genuine depositors of the Sahara Group of Cooperative Societies, which otherwise, shall be entitled to get back their money, the prayer sought in the present application seems to be reasonable and which shall be in the larger public interest / interest of the genuine depositors of the Sahara Group of Cooperative Societies.”

Advocate Kedar Nath Tripathy appeared for the petitioner and Solicitor General Tushar Mehta appeared for the Union of India- respondent.

In this case, an application was filed by the Centre in a PIL whereby directions were sought to pay the amount to the depositors, who had invested in several chit fund companies and Sahara Credit firms.

The Apex Court ordered that out of the total amount of Rs. 24,979.67 Crores lying in the “Sahara-SEBI Refund Account”, Rs. 5000 Crores be transferred to the Central Registrar of Cooperative Societies, who, in turn, would disburse the same against the legitimate dues of the depositors of the Sahara Group of Cooperative Societies. The amounts should be paid in the most transparent manner and on proper identification and on submitting proof of their deposits and proof of their claims and to be deposited in their respective bank accounts directly.

The Apex Court further directed that the disbursal of funds would be supervised and monitored by former Supreme Court judge Justice R Subhash Reddy and Advocate Gaurav Agarwal has been appointed as Amicus Curiae to assist Justice Reddy.

It further directed that Rs. 15 lakhs per month would be paid to Justice Reddy and Rs. 5 lakhs per month would be paid to Agarwal towards their honorarium.

The Court also directed that the amount be paid to the respective genuine depositors at the earliest, but not later than nine months from the date of this decision.

Accordingly, the application was disposed of.

Cause Title- Pinak Pani Mohanty v. Union of India & Ors. 

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