Subrata Roy death: Govt seeks to transfer unclaimed funds to Consolidated Fund of India, says report

The government is reportedly considering the legality of transferring unclaimed funds from the Sahara-Sebi Refund Account to the Consolidated Fund of India. It is expected to include a provision for investors who make their claims later, according to a report by the Economic Times. The government’s decision comes after the founder of the Sahara Group, Subrata Roy, died last week. According to the report, there have been very few claimants in the nearly ten years since the refund account was established.

The report cited an unnamed official as saying that the option of shifting the amount to the Consolidated Fund of India with a separate account to repay investors would be explored.

As of March 31, the total amount recovered from the group and deposited in state-run banks was Rs 25,163 crore, after paying Rs 138 crore to 17,526 applications involving 48,326 accounts, The Economic Times report said.

Earlier this year, following the Supreme Court ruling in March, Rs 5,000 crore was transferred to the Chief Registrar of Co-operative Societies for disbursement against the legitimate dues of genuine depositors of the Sahara Co-operative Group. A dedicated portal was created for the refunds.

Subrata Roy was a big famous name in India. The Sahara was once a sponsor of the Indian cricket team. Roy was also a co-owner of former Formula One team Force India.

The Sahara entities had raised the money through optional convertible debentures. Sebi said this was done without its permission and asked Sahara to refund depositors, The Economic Times report said.

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