Amit Shah launches transfer of funds through CRCS-Sahara Refund Portal

The Union Home Minister and Minister of Cooperation, Amit Shah launched the transfer of funds to the genuine depositors of Sahara Group of Cooperative Societies through Central Registrar of Cooperative Societies (CRCS)-Sahara Refund Portal  in New Delhi on 4 August 2023.  Rs 10,000 each was transferred to the  Aadhaar linked bank accounts of 112 beneficiaries  registered with the portal.

According to Amit Shah priority will be given to one crore investors who had deposited Rs 10,000 or more in the various schemes of the Cooperatives run by the Sahara group. 

Central Registrar of Cooperative Societies -Sahara Refund Portal:

• The Central Registrar of Cooperative Societies (CRCS)-Sahara Refund Portal was launched by Amit Shah on 18th July, 2023.   Sahara Refund Portal has been developed for submission of claims by genuine depositors of Cooperative Societies of Sahara Group - Sahara Credit Cooperative Society Limited, Saharayan Universal Multipurpose Society Limited, Hamara India Credit Cooperative Society Limited and Stars Multipurpose Cooperative Society Limited.   
• The CRCS was set up on the order of the Supreme Court dated  29th March 2023. The Supreme Court had ordered that  Rs. 5000 Crores be transferred out of the “Sahara-SEBI Refund Account”, to the Central Registrar of Cooperative Societies (CRCS) for disbursement against the legitimate dues of the genuine depositors of the Sahara Group of Cooperative Societies.
• The whole process of disbursement is being supervised and monitored by Justice R. Subhash Reddy, Former Judge of Hon’ble Supreme Court .

Background to the issue:

The Sahara scam is one of the largest financial scandals in India .The Sahara group companies involved in real estate and housing raised around Rs 24,000 crore from the investors by issuing Optionally Convertible Debentures .

However the fund was raised without the permission of capital market regulator Securities Exchange Board of India (SEBI).  SEBI asked the Sahara companies to return the fund to the investor  and stop accepting funds from the investors  as it was in violation of the rules.  The Sahara Group challenged SEBI order and the case ultimately went to the Supreme Court. 

The Sahara group lost the case in the Supreme court and the Supreme Court ordered it to return the money to the investor.  This case led to more investigation against  the Sahara group . It was charged with violation of rules,money laundering  and action was taken against it , Its funds were frozen and its license cancelled .

Important full form for exam

CRCS: Central Registrar of Cooperative Societies