By ATISH
America News World
Updated: September 12, 2025
In a major win for thousands of everyday investors who lost money in a huge financial scam, India’s Supreme Court has given the green light for releasing another $600 million (about Rs 5,000 crores) from funds held by the Sahara Group. This money, which has been sitting in a special account managed by India’s stock market watchdog SEBI, will now go towards paying back people who put their hard-earned cash into Sahara’s cooperative societies years ago. The court also pushed back the final deadline for handing out these payments until the end of December 2026, giving more time for people to claim what’s theirs.
CLICK HERE FOR :-SAHARA REFUND PORTAL LINK
This decision comes after the Indian government asked the court for help, saying it’s important to get this money to the real victims as soon as possible. The Supreme Court bench, made up of Justices Surya Kant and Joymalya Bagchi, heard from the government’s top lawyer, Solicitor General Tushar Mehta, before making the call. They pointed out that a similar amount was released back in March 2023, and now there’s even more unclaimed cash just waiting to be used.
To put this in simple terms, the Sahara Group was once a big name in India, offering what looked like safe investment options through its cooperative societies and chit funds. But in 2012, the Supreme Court stepped in after SEBI found out that Sahara had collected billions from nearly 30 million small investors without following the rules. The court ordered Sahara to return the money with 15% interest, and the funds ended up in a “Sahara-SEBI Refund Account.” Over the years, the total pot has grown to around Rs 25,000 crores (about $3 billion) thanks to interest, but much of it remains untouched because of verification issues and delays.
The latest order builds on that 2023 ruling. Back then, the court said Rs 5,000 crores could be moved from the refund account to the Central Registrar of Cooperative Societies (CRCS), a government body that handles these payouts. That money was meant to go directly to genuine depositors who could prove their claims. Now, the court is doing the same thing again: transferring another Rs 5,000 crores to the CRCS within one week. The whole process will be watched over by former Supreme Court Judge Justice R. Subhash Reddy, just like before. He’ll make sure everything is done fairly, following the same steps outlined in the 2023 order. A senior lawyer, Gaurav Agarwal, is also helping as an advisor, or “amicus curiae.”
Why is this happening now? The government’s request was part of a public interest lawsuit (PIL) started by a man named Pinak Pani Mohanty in 2022. He wanted the court to force action so that depositors in chit funds and Sahara credit companies could get their money back. The application explained how the first round of payouts worked: Investors had to file claims online through a special web portal set up by the Ministry of Cooperation. They needed to provide documents to verify they were real investors, and everything was done digitally using Aadhaar-linked bank accounts to avoid fraud.
But things haven’t gone as fast as hoped. According to the government’s update, out of the first Rs 5,000 crores released in 2023, only about Rs 5,053 crores have been paid out so far to over 2.6 million genuine depositors. That’s because the total claims filed so far add up to a whopping Rs 1.13 lakh crores (about $13.5 billion) from around 5.43 million investors! Another 1.3 million claims are still being checked, totaling nearly Rs 27,850 crores. The government estimates that up to 3.2 million more people might come forward by the end of 2026. Delays happened because some claims were incomplete or needed extra checks, and interest has built up on the unused money.
SEBI’s lawyer showed up late in the hearing and asked for more time to get instructions from their bosses, even suggesting the order be paused until Monday. But the judges weren’t having it. They made it clear this wasn’t a “consent order” – meaning it wasn’t just rubber-stamped without discussion. The bench stood firm, saying the decision was based on facts and the public good.
This case highlights bigger problems in India’s financial world, especially for small savers from rural areas who got tricked into these schemes. Many of them invested small amounts, like a few thousand rupees, hoping for steady returns. But Sahara’s companies, like Sahara India Real Estate Corporation and Sahara Housing Investment Corporation, raised money illegally without proper approvals. The 2012 Supreme Court verdict was a wake-up call, but getting the refunds out has been a long, bumpy road. As of earlier this year, reports showed that only a tiny fraction – less than 1% in some cases – of the available funds had reached claimants due to paperwork hurdles. The government has been working on a “resubmission portal” since late 2023 to help fix that, allowing people to update their applications easily.
For now, payouts are limited to Rs 50,000 (about $600) per person to spread the money around, but that could change as more claims get verified. The CRCS-Sahara Refund Portal is still open, and anyone who thinks they qualify should check it out at mocrefund.crcs.gov.in. It’s all paperless and straightforward – just log in, upload proofs like old receipts or passbooks, and wait for approval.
This extension to December 2026 is a relief for many families still waiting. It shows the Supreme Court’s commitment to justice, even if it takes time. As Union Cooperation Minister Amit Shah told Parliament earlier this year, over Rs 2,300 crores have already gone out to more than 1.2 million people, and the process is gaining speed. But with billions still unclaimed, there’s a lot more work ahead.
The Sahara saga isn’t over yet. The group has faced heat for not fully complying with earlier orders, and SEBI keeps pushing for the full Rs 62,000 crores plus interest. In September 2024, the court even told Sahara they could sell properties to raise cash, as long as it’s approved. For investors worldwide, especially the Indian diaspora in America who might have family ties to these schemes, this is a reminder of how important it is to check investments carefully.
America News World will keep following this story as more details come out. If you or someone you know was affected by Sahara, share your thoughts in the comments below. Stay informed, stay safe with your money!
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