Good News Alert! Millions of people who were left in a state of uncertainty when Sahara was disbanded for illicit activities and scamming millions, can now take a sigh of relief as the government, on 18th July 2023, launched the CRCS Sahara refund portal, which attempts to return money of 1 Crore 7 lakhs investor's wealth duped by Sahara. Now, what was this scam? who is entitled to claim the money? Where can we claim our money?
This blog will explore everything you need to know to claim your hard-earned money through this newly launched relief package.
What was the Sahara Scam?
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In 1978, Subrato Roy founded Sahara, a company that promised incredible returns on investments. As his business expanded, the Sahara India Pariwar Group of Companies was established. Let's take the help of an example to understand the scenario even better!
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Imagine a situation where you thought of investing with them with just Rs. 10 & in return; they promised to double it in a short time - so you got back Rs. 20! This way, Sahara won the trust of many people, so they started investing their hard-earned money. Some invested for 6 months, while others went for 1 year & so on, all expecting those magical profits at different time periods.
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But here's the twist - Sahara didn't really have any magical profits. Instead, they were using the money from new investors to pay off the older ones. It was like a chain system, with more and more people getting roped in. These people felt satisfied when they received their doubled amounts, and that's when they brought in even more people to invest.
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This seemed like a win-win situation until it all came crashing down. So, Mr Subrata Roy served as the group's chairman. Sahara soon became a "common name" in Indian households, as it served as the official title sponsor of India's national cricket team for 11 long years.
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However, at one point of time it was failing to pitch new investors, ultimately compelling them to bring an IPO. From this moment on, the company's fortune took a wild ride downhill as SEBI went in for a closer look.
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In 2011, a financial scandal involving the Sahara Group came to light when a chartered accountant named RoshanLal raised concerns about the discrepancies in housing bonds issued by two Sahara companies, Sahara India Real Estate Corporation (SIREC) and Sahara Housing Investment Corporation (SHIC), as these companies raised significant amounts of money without proper accountability.
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The National Housing Bank (NHB) forwarded the complaint to the Securities and Exchange Board of India (SEBI) for investigation.
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Subrata Roy contested SEBI's authority, claiming that the company had submitted its prospectus to the Registrar of Companies (ROC) before issuing the bonds and therefore, they were not engaged in fraud.
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SEBI directed the two Sahara companies to halt the disputed bond sale and repay the investors. Subrata Roy was given a three-month deadline with a 15% interest rate to deposit the money with SEBI. Despite making an initial payment of Rs. 5120 crores, Subrata Roy failed to pay the subsequent two instalments, arguing that investors had already been reimbursed.
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The Supreme Court ordered Subrata Roy's detention on 26th February 2014 after failing to pay SEBI the required deposits. In November 2017, the Enforcement Directorate accused the Sahara Group of money laundering.
Did you know? 💡
Sahara's overconfidence resulted in their devastating downfall. When SEBI demanded proof of their funds, they thought they could outsmart everyone by sending 128 trucks filled with forged documents to SEBI's office. 😲 Little did they know that their grand plan would backfire. The documents they flaunted were nothing more than a web of lies, concealing the truth about their shady dealings with politicians' black money.
If you want to read more such articles like other famous scams, then click here!
Ray of hope
Investors of Sahara Group have found a ray of hope as the government of India has recently launched the CRCS Sahara refund portal where depositors can apply for refunds on the CRCS-Sahara Refund Portal, and the money will be deposited into their bank accounts within 45 days. The portal is expected to benefit approximately one crore depositors giving them their right to get back their hard-earned money.
But what is CRCS - Sahara Refund Portal? How can you claim your money?
CRCS - Sahara Refund Portal
In this section, we'll be discussing the CRCS - Sahara Refund Portal, the Eligibility criteria to apply, and when you will be getting your money back. Let's get started.
Introducing the CRCS Sahara Refund Portal:
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The CRCS Sahara Refund Portal is an online platform established by the Central Registrar of Cooperative Societies (CRCS) to facilitate eligible depositors of Sahara India Group in claiming their refunds. Launched on 18 July 2023, the portal currently accepts online applications.
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To qualify for a refund, depositors must have invested in one of the four Sahara Group cooperative societies directed by the Supreme Court of India to reimburse their investors. These four Sahara Group cooperatives are as follows:
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Sahara Credit Cooperative Society Ltd.
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Saharayan Universal Multipurpose Society Ltd.
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Humara India Credit Cooperative Society Ltd.
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Stars Multipurpose Cooperative Society Ltd
It is important to note that this portal is functional on a trial basis, and as per Union Minister Amit Shah, Union Minister Shah, through this portal, the first payment of up to Rs.10,000 will be made to one crore investors who had deposited Rs. 10,000 or more.
After the Rs. 5,000 crore payment is completed, another appeal will be made in the Supreme Court to return the amount to the remaining investors, he added.
Procedure of application under Sahara Refund Portal
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The process to claim a refund is straightforward. Upon registration on the portal, depositors need to provide personal information like their membership number, name, address, AADHAR and PAN number.
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Please note that your mobile number should be linked with your AADHAR.
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Once AADHAR is verified via OTP, depositors will land on a page where they have to submit their claims and details as per the Certificate of Deposit.
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Once all the claim details are entered, the pre-filled claim request form will be prepared. Please ensure all claims are entered before preparing the form, as it cannot be changed or added later.
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Additionally, depositors must upload copies of their investment documents as per prompted by the portal. Subsequently, the committee will review the applications, and if approved, the refund will be processed within 45 days, as assured by our Union Minister Amit Shah.
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The CRCS Sahara Refund Portal offers a convenient and efficient solution for Sahara depositors seeking to reclaim their funds. Eligible depositors are encouraged to visit the portal and submit their applications promptly.
As a responsible organisation, Finology prioritises protecting the interests of our members. Hence we want to alert you about fraud websites and fake registration portals committing fraud under the name of Sahara Refund Portal. You can access the portal via https://mocrefund.crcs.gov.in
With the drastic rise in cyber crimes in India, it's crucial to safeguard your digital space. Our recent blog discusses essential provisions of the IT Act 2000 to help you stay informed and secure online.
Conclusion
The launch of the CRCS Sahara Refund Portal by the government on 18 July 2023 has brought a ray of hope to millions of investors left in uncertainty due to Sahara's illicit activities and financial scams. This portal aims to return the hard-earned money of 1 Crore 7 lakhs depositors who the Sahara Group cheated. Eligible depositors can now initiate their application, and the money will be deposited into their bank accounts within 45 days. This initiative is expected to benefit approximately one crore investors, allowing them to reclaim their rightful funds. What do you guys think about this move by our government? Tell us in the comment section below.
FAQs (Frequently Asked Questions)
1. What is the CRCS - Sahara Refund Portal, and who is eligible to apply?
The CRCS Sahara Refund Portal is an online platform established by the Central Registrar of Cooperative Societies (CRCS) to facilitate eligible depositors of Sahara India Group in claiming their refunds. To be eligible, depositors must have invested in one of the four Sahara Group cooperative societies directed by the Supreme Court of India.
2. Which cooperative societies are covered under the refund portal?
The four Sahara Group cooperative societies covered under the refund portal are Sahara Credit Cooperative Society Ltd., Saharayan Universal Multipurpose Society Ltd., Humara India Credit Cooperative Society Ltd., and Stars Multipurpose Cooperative Society Ltd.
3. How can I apply for a refund on the CRCS - Sahara Refund Portal?
To apply for a refund, visit the CRCS - Sahara Refund Portal at https://mocrefund.crcs.gov.in. Register on the portal and provide your personal information, such as name, address, AADHAR, and PAN number. Make sure your mobile number is linked with your AADHAR. Submit your claims and investment details as per the Certificate of Deposit, and upload the required investment documents.
4. What is the process for refund approval and disbursement?
Once your application is submitted, it will be reviewed by the committee. If approved, the refund will be processed within 45 days, as Union Minister Amit Shah assured.
5. Is there any portal charges or application fees?
No, this portal has no portal charges, and claimants can make their application for a refund free of cost.