In a major development in the ongoing investigation against the Sahara group, the Kolkata office of the directorate of enforcement (ED) has provisionally attached over 707 acres of land in and around Aamby Valley City near Lonavala in Maharashtra. The land, with an estimated market value of Rs1,460 crore, has been seized under the provisions of the Prevention of Money Laundering Act (PMLA), 2002.
According to ED, this land was purchased in benami names using funds allegedly diverted from various Sahara group entities. The investigation was initiated based on three first information reports (FIRs) registered by police in Odisha, Bihar and Rajasthan under Sections 420 (cheating) and 120B (criminal conspiracy) of the Indian Penal Code. In total, over 500 FIRs have been filed across the country against Sahara entities and associated individuals, with more than 300 related to offences listed under the PMLA.
The ED alleges that Sahara group operated a massive Ponzi scheme through multiple companies and cooperative societies, including Humara India Credit Cooperative Society Ltd (HICCSL), Sahara Credit Cooperative Society Ltd (SCCSL), Saharayn Universal Multipurpose Cooperative Society (SUMCS), Stars Multipurpose Cooperative Society Ltd (SMCSL), Sahara India Real Estate Corporation Ltd (SIRECL), Sahara Housing Investment Corporation Ltd (SHICL) and Sahara India Commercial Corporation Ltd (SICCL).
These entities are accused of luring depositors and agents with promises of high returns and commissions, collecting money in an unregulated manner and failing to repay maturity amounts. Instead, depositors were allegedly forced or misled into reinvesting their funds into other schemes, creating a false illusion of repayment. The ED claims the Sahara group manipulated its books to show reinvestments as fresh investments and continued to accept new deposits, despite being unable to meet existing obligations.
Part of the money collected from depositors was allegedly siphoned off to fund personal expenses and create assets in the names of proxies. The agency further revealed that the group sold some of its assets in cash, off the record, denying rightful claims to its investors. Searches conducted under Section 17 of the PMLA led to the seizure of Rs2.98 crore in unexplained cash. Statements from depositors, agents, Sahara employees and other individuals have been recorded as part of the investigation.
The ED’s latest move adds to the mounting legal pressure on the Sahara group which has been accused of defrauding lakhs of small investors. The attachment of land in the ultra-luxurious Aamby Valley — once a symbol of Sahara’s grandeur—signals intensified efforts to recover assets tied to the alleged fraud. The investigation is ongoing.
In February this year, the Indian government has announced that Rs2,025.75 crore has been disbursed to 1.16mn (million) depositors of the Sahara group of cooperative societies as of 28 January 2025. It includes depositors of SCCSL, Saharayan Universal Multipurpose Society Ltd, HICCSL and SMCSL, Amit Shah, the Union minister of cooperation, informed the Lok Sabha.
The ongoing refund process follows a Supreme Court order dated 29 March 2023 in connection with an interlocutory application filed by the ministry of cooperation in case WP (C) No.191/2022 (Pinak Pani Mohanty vs Union of India & Others). The Court directed that Rs5,000 crore be transferred from the 'Sahara-SEBI Refund Account' to the central registrar of cooperative societies (CRCS) for distribution among legitimate depositors.
The disbursement is being carried out under the supervision of justice R Subhash Reddy, a former judge of the Supreme Court and assisted by advocate Gaurav Agarwal who has been appointed as amicus curiae. The process ensures that funds reach eligible depositors securely and transparently, the government says.
Moneylife Foundation has been tracking the troubles faced by investors of Sahara's various cooperative societies and has also hosted a Telegram group for aggrieved investors to coordinate and collectively find solutions to their problems. The group, which was formed during the pandemic, has over 600 members who regularly post about their experiences and share updates whenever one of them receives a refund. (Read:
Sahara CRCS Refund Portal: A Year of Delays, Many Still Waiting for Payout)
In 2023, the Supreme Court ordered a portion of the funds (Rs5,000 crore) retrieved by the Securities and Exchange Board of India (SEBI) to be transferred to the Union ministry of cooperation to facilitate refunds to the investors. The apex court had ruled that the Rs5,000 crore should be paid to the legitimate depositors of the Sahara group of cooperative societies as soon as possible, but no later than nine months from the date of the ruling. Any remaining funds would then have to be transferred back to the Sahara-SEBI refund account.
