Winning Bizness Desk

Mumbai. In a significant relief for small depositors of Sahara Group cooperatives, the government has raised the refund limit from Rs 10,000 to Rs 50,000. This decision will benefit thousands of depositors seeking refunds through the CRCS (Central Registrar of Cooperative Societies)-Sahara Refund Portal. A senior official from the Ministry of Cooperation confirmed that the government has already released Rs 370 crore to over 4.29 lakh depositors from Sahara Group cooperatives. “With the increase in the refund limit to Rs 50,000, around Rs 1,000 crore will be disbursed to depositors within the next 10 days,” the official added. This development follows last week’s decision to raise the refund cap, enabling small depositors to claim a larger portion of their legitimate deposits.

Sahara Group has long been embroiled in financial controversies

The CRCS-Sahara Refund Portal was launched on July 18, 2023, in compliance with a Supreme Court directive. The portal was set up to facilitate claims from genuine depositors of four multi-state cooperative societies under the Sahara Group. These societies include Sahara Credit Cooperative Society Ltd. in Lucknow, Saharayan Universal Multipurpose Society Ltd. in Bhopal, Hamara India Credit Cooperative Society Ltd. in Kolkata, and Stars Multipurpose Cooperative Society Ltd. in Hyderabad. The Sahara Group has long been embroiled in financial controversies, and the refund process aims to provide relief to depositors who have been waiting to recover their money. The Supreme Court had ordered Rs 5,000 crore to be transferred from the SEBI-Sahara Refund Account to the Central Registrar of Cooperative Societies on May 19, 2023, following its March 29, 2023, judgment. With the refund limit now extended, the government aims to expedite the process and ensure more depositors receive their funds swiftly. Many of these depositors, who have invested their life savings in Sahara’s cooperative societies, have been eagerly awaiting this financial assistance.

The increment to impact the lives of small depositors

The increase in the refund limit is expected to significantly impact the lives of small depositors, offering them financial relief after years of uncertainty. The Ministry of Cooperation remains committed to ensuring that the refund process continues smoothly, in line with the Supreme Court’s directive. This move marks another step forward in addressing the long-standing concerns of Sahara Group’s depositors and showcases the government’s resolve to ensure justice for small investors. The CRCS-Sahara Refund Portal will continue accepting claims, and depositors are encouraged to submit their refund requests to avail of the enhanced benefits. In the coming weeks, more funds are expected to be disbursed as the government pushes to resolve the remaining claims.