SEBI Holds ₹21,505 Crore in Sahara Refund Account Amid Pending Supreme Court Asset Sale

More than eight years after the capital market regulator initiated the refund process for investors in the Sahara case, the Securities and Exchange Board of India (SEBI) is currently holding a cash pile of ₹21,505 crore. According to SEBI's latest annual report, no fresh refunds were made during the 2025-26 period.

The balance in the Sahara refund account increased to approximately ₹16,379 crore as of March-end 2026, compared to ₹16,138 crore in the 2024-25 financial year. This balance was against a principal liability of ₹25,781 crore, the report stated.

As of March-end, the total fund balance—which includes accrued interest in fixed deposits across various nationalized banks—stood at about ₹21,505 crore. This figure accounts for the ₹5,000 crore remitted to the Central Registrar of Cooperative Societies for disbursement to investors in schemes run by Sahara Group of Co-operative Societies.

In parallel developments regarding Sahara assets, both Sahara Group companies have filed an application in the Supreme Court to sell their entire remaining assets to Adani Properties. In January, SEBI submitted its response to the Supreme Court, emphasizing that the sale of Sahara properties must be conducted in a transparent and fair manner. SEBI noted that the process should provide opportunities for all interested purchasers while remaining subject to conditions previously set by the Supreme Court. The matter is currently pending before the court.

Legal experts have pointed out operational challenges in the ongoing process. Sonam Chandwani, Managing Partner at KS Legal & Associates, noted that the absence of a clear end point remains a pressing concern. She stated that a refund mechanism cannot continue indefinitely without a defined procedure for handling dormant or disputed claims. According to Chandwani, authorities should be required to publish a definite roadmap detailing how long claims will remain open, how unresolved claims will be addressed, and how the remaining balance will be handled thereafter.

SEBI's special enforcement cell was originally constituted to implement Supreme Court directions to refund amounts collected from investors of Sahara India Real Estate Corporation and Sahara Housing Investment Corporation. The activities of SEBI in this matter are monitored by retired Supreme Court Justice BN Agarwal.

The regulatory and legal proceedings trace back to a 2012 Supreme Court ruling. The court found that two Sahara Group companies had illegally raised over ₹24,000 crore from 23 million investors—mostly from small towns—through optionally fully convertible debentures, thereby bypassing market regulator rules. The court ordered a full refund with 15 percent interest.

"The prolonged nature of the Sahara refund case highlights the critical need for administrative closure and clear timelines in large-scale regulatory distributions. With over ₹21,500 crore sitting in the corpus and legal proceedings pending regarding asset sales, establishing a definitive roadmap for unclaimed and disputed funds is essential for institutional transparency and finality." — Dr. Shishir Gupta, Founder & CEO, StartupLanes