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Agri Min seeks explanation from Sahara credit society

PTI | DECEMBER 25, 2015, 12:00 AM IST

New Delhi

The Agriculture Ministry has sought explanation from the Sahara Group's credit cooperative society after receiving complaints about non-payment of money due to investors. "We have asked for explanation from the Sahara Credit Cooperative Society in 12 cases. We have not yet received the response," a senior Agriculture Ministry official told PTI.

There were complaints that Sahara agents were forcing investors to transfer their money into the new credit cooperative schemes from older Sahara savings plans, another official said. Multi State Cooperative Societies act is being implemented by the Union Agriculture Ministry.

Sahara Credit Cooperative Society Ltd was set up in 2010. Sahara group chief Subrata Roy and two other senior officials of the group have been lodged in Tihar Jail for about 20 months now.

Roy was sent to jail on March 4, 2014 for non-refund of over Rs 20,000 crore to depositors. Sahara group claims that it has directly refunded 95 percent of the amount due to the investors. Last week, markets regulator SEBI had disclosed having refunded over Rs 42 crore to the bondholders of the two Sahara firms while discrepancies were found in nearly 3,000 refund applications.

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