2023 (3) TMI 1335 - SC - SEBI

Utilisation of amount deposited in Sahara- SEBI Refund Account - Directions to transfer an amount out of unutilized amount (lying in Sahara-SEBI Refund Account ) to be disbursed against the legitimate dues of depositors of Sahara Group of Cooperatives Societies - HELD THAT - Having heard Shri Tushar Mehta, learned Solicitor General appearing on behalf of the Union of India and taking into consideration the facts narrated hereinabove and when it is reported that Rs. 2253 Crores had been taken out of the Sahara Credit Cooperative Society Ltd., i.e., one of the four Sahara Group Multi-State Cooperative Societies and deposited with SEBI in the Sahara-SEBI Refund Account and 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.

Summary

Issues involved:
Transfer of unutilized amount to depositors of Sahara Group of Cooperatives Societies.

Transfer of Unutilized Amount:
The Union of India filed an application seeking directions to transfer Rs. 5,000 Crores from the unutilized amount of Rs. 23,937 Crores in the "Sahara-SEBI Refund Account" to pay the legitimate dues of depositors of Sahara Group of Cooperatives Societies. The total unutilized amount with SEBI was Rs. 24,979.67 Crores, out of which Rs. 15,569.27 Crores were deposited by Sahara entities. It was highlighted that the corpus in the account already included funds belonging to depositors. The Solicitor General emphasized the need for transferring Rs. 5,000 Crores to the Central Registrar of Cooperative Societies for equitable disbursement to depositors, ensuring transparency and proper identification.

Justification for Transfer:
The Solicitor General argued that the unutilized amount in the "Sahara-SEBI Refund Account" included funds of depositors from Sahara Group of Cooperative Societies. Emphasizing the absence of any charge or attachment on the amount, it was proposed to transfer Rs. 5,000 Crores to the Central Registrar for disbursement to genuine depositors under the supervision of a Former Judge of the Court. The application was supported by the need for transparent and just disbursement to benefit the depositors, considering the continuing complaints against Sahara Group.

Court's Decision and Directions:
After hearing the submissions, the Court acknowledged the unutilized amount and the rightful claims of Sahara Group depositors. The application was disposed of with the following directions: Rs. 5,000 Crores from the total amount in the account be transferred to the Central Registrar for disbursement to depositors in a transparent manner. Justice R. Subhash Reddy, a Former Judge, was appointed to supervise the disbursement process along with an Advocate appointed as Amicus Curiae. The Court directed monthly honorarium payments to the supervising officials. It was mandated that the disbursement to genuine depositors should be completed within nine months, after which the remaining balance should revert to the "Sahara-SEBI Refund Account."