Supreme Court directs Union of India to transfer Rs. 5,000 Crores to Sahara Group depositors

On 29 March 2023 , In a recent judgement Pinak Pani Mohanty Vs. Union of India and Ors. And In the matter of Union of India through Ministry of Cooperation  , the Supreme Court of India has directed the Union of India, Ministry of Corporation to transfer an amount of Rs. 5,000 Crores out of the unutilized amount of Rs. 23,937 Crores lying in the "Sahara-SEBI Refund Account" to be disbursed against the legitimate dues of depositors of Sahara Group of Cooperative Societies.

The judgement came in response to the present application I.A. No. 56308 of 2023 preferred by the Union of India. The Solicitor General has submitted that the amount deposited in the "Sahara-SEBI Refund Account" is lying unutilized and the amount belongs to the depositors of the Sahara Group of Cooperative Society Ltd.

The Supreme Court has also directed that the disbursement of the amount shall be supervised and monitored by Justice R. Subhash Reddy, Former Judge of this Court with the able assistance of Shri Gaurav Agarwal, learned Advocate, who is appointed as Amicus Curiae to assist Justice R. Subhash Reddy as well as the Central Registrar of Cooperative Societies in disbursing the amount to the genuine depositors of the Sahara Group of Cooperative Societies. The disbursement shall be made in the most transparent manner and on proper identification and on submitting proof of their deposits and claims, and to be deposited in their respective bank accounts directly. The balance amount after disbursal shall be transferred back to the "Sahara-SEBI Refund Account".

The Supreme Court has also directed that Rs. 15 lakhs per month be paid to Justice R. Subhash Reddy, Former Judge of this Court and Rs. 5 lakhs per month be paid to Shri Gaurav Agarwal, learned Amicus Curiae towards their honorarium. The disbursement of the amount to the respective genuine depositors of the Sahara Group of Cooperative Societies out of the aforesaid amount of Rs. 5,000 Crores shall be made at the earliest but not later than nine months from the date of the judgement.

The Supreme Court's judgement is a significant step towards securing the rights of depositors of the Sahara Group of Cooperative Societies and ensuring transparency and fairness in the disbursement of funds.

Pinak Pani Mohanty Vs. Union of India and Ors