Sahara Group founder Subrata Roy’s loss of life final week dropped at focus the undistributed funds of over Rs 25,000 crore mendacity with the share market regulator for greater than a decade.
What occurs to these unclaimed funds? Will the unclaimed cash be refunded to the Consolidated Fund of India? Is the federal government exploring this selection after Mr Roy’s loss of life final Tuesday?
It will likely be very untimely of the Securities and Trade Board of India (SEBI) to switch the cash, extra so because the technique of transferring by way of the Sahara refund portal remains to be happening, stated authorities sources.
“We’ve managed to pay about Rs 230 crore to as many as 2.5 lakh buyers. New registrations are nonetheless going down, so it will be untimely to say cash from the SEBI can be transferred to the Consolidated Fund of India,” a senior authorities official informed NDTV.
The centre has been transferring cash from the funds mendacity the SEBI inside 45 days of registrations after being verified on the refund portal which was launched by Union Co-operative Minister Amit Shah final July.
Mr Roy began dealing with issues in 2012 when the Supreme Court docket upheld a SEBI order instructing the Sahara India Actual Property Corp and Sahara Housing Funding Corp to repay their buyers with curiosity. The court docket had then requested for Rs 25,000 crore to be invested with the SEBI.
“The court docket had requested these corporations to deposit the cash with the SEBI, however since they didn’t have money, they raised Rs 80,000 crore by way of 4 co-operative societies. Out of this, Rs 25000 crore was transferred to the SEBI and Sahara Group invested the remaining quantity in Aamby Valley Metropolis,” he defined.
The federal government claimed that they’d approached the Supreme Court docket when the retail buyers who had deposited cash with the cooperative societies needed their a reimbursement.
Beneath the court docket’s steerage, Rs 5,000 crore was initially transferred from the SEBI and buyers began getting cash by way of the Sahara refund portal. If there’s a additional want, the federal government would ask SEBI to switch extra money to the refund portal, based on an official.
“It is an automatic, streamlined, and structured course of and it’s nonetheless ongoing. As soon as accomplished, then solely the legality of transferring the funds to CFI could be examined,” he stated, including that this switch would additionally embrace the supply of transferring funds to buyers in future.
As many 2.76 crore depositors had invested in 4 Co-operative societies and 97 p.c of them have been retail buyers who deposited lower than Rs 40,000.
Authorities data recommend many of the buyers have been from Uttar Pradesh and Bihar. Round 85 lakh buyers from UP had deposited Rs 2,200 crore and 55 lakh from Bihar deposited Rs 1,500 crore.
Subrata Roy died in Mumbai final Tuesday on the age of 75 after battling a chronic sickness.