SEBI became aware of undistributed funds totaling more than Rs 25,000 crore after the death of Subrata Roy

 SEBI became aware of undistributed funds totaling more than Rs 25,000 crore after the death of Subrata Roy

At the age of 75, Subrata Roy passed away in Mumbai on Tuesday night after a protracted illness.

Following the passing of Sahara Group CEO Subrata Roy, attention has once again turned to the undistributed sum of over Rs 25,000 crore that is held in the capital markets regulator SEBI's account. Roy, 75, passed away in Mumbai on Tuesday night after a protracted illness.

In connection with his group firms, he was involved in a number of legal and regulatory disputes. The companies were accused of using Ponzi schemes to bypass rules, an accusation that the group always refuted.

Two Sahara group firms, Sahara India Real Estate Corporation Limited (SIREL) and Sahara Housing Investment Corporation Limited (SHICL), also known as part of the monies obtained from investors via specific bonds, were prohibited by capital markets regulator SEBI in 2011. mandated a comeback. Bonds with full conversion (OFCD).

The regulator's decision that the two firms had solicited money in contravention of its policies and procedures led to the order. On August 31, 2012, the Supreme Court affirmed SEBI's directives requesting that both businesses refund the money they had received from investors plus 15% interest, after a protracted process of appeals and cross-appeals.

In the end, Sahara was requested to deposit an approximate amount of Rs 24,000 crore with SEBI in order to facilitate further investor refunds; however, the company has consistently stated that it had already reimbursed over 95% of investors directly.

According to the capital markets regulator's most recent annual report, investors in two Sahara Group firms received refunds from the Securities and Exchange Board of India (SEBI) totaling Rs 138.07 crore over the course of 11 years.

Over Rs 25,000 crore has been deposited in bank accounts that were specifically formed for repayment in the interim. The overall amount reimbursed by Sebi climbed by about Rs 7 lakh during the most recent financial year 2022–2023 in the absence of claims from the majority bondholders of the two Sahara firms, while the balances in the Sebi-Sahara refund accounts increased. 1,087 crore rupees in the year.

The yearly report states that up till March 31, 2023, SEBI received 19,650 applications pertaining to 53,687 accounts. Of these, "refunds have been given to 17,526 applications involving 48,326 accounts for a total sum of Rs 138.07 crore, which also includes rate of interest of Rs 67.98 crore." Crore." Due to the inability to locate their records in the data supplied by the two Sahara group companies, the remaining applications were closed.

Sebi had previously reported that, as of March 31, 2022, the total sum associated with 17,526 applications was Rs 138 crore. Furthermore, SEBI said that up till March 31, 2023, a total of Rs 15,646.68 crore had been recovered under different rulings issued by the Supreme Court and attachment orders issued by the regulator.

According to the Supreme Court's August 31, 2012 ruling, this sum was placed in nationalized banks together with interest that was generated when bondholders who qualified for a refund would receive their money back. According to SEBI, there would be around Rs 25,163 crore deposited in nationalized banking institutions as of March 31, 2023.

The sum was Rs 24,076 crore, Rs 23,191 crore, and Rs 21,770.70 crore as of March 31, 2022, March 31, 2021, and March 31, 2020, respectively. In the background, the Center started the process in August of paying depositors who were left behind in four Sahara Group cooperative societies Rs 5,000 crore.

In July, Cooperation Minister Amit Shah established the 'CRCS-Sahara Refund Portal' to make it easier for investors to get their money back. On the platform, there are over 18 lakh registered depositors. The government had said in March that within nine months, 10 crore investors in four cooperative organizations will have their money back.

The statement followed the Supreme Court's directive to send Rs 5,000 crore to the Central Registrar of Cooperative Societies (CRCS) from the Sahara-SEBI refund account.