Ranchi : The money collected through OFCDs were invested in various assets of the constitution and when the need arose for the repayments to the investors the companies of the group made the money available and they were given the interest in those assets to the extend to their contribution.
It is relevant to mention that Sahara operates from around 5000 branches across the country and all the payments were made through those branches only. It is this pan India network of Sahara’s branches, which made the company to refund money.
All the documents pertaining to these repayments have been handed over to SEBI in original, along with the original bond certificates surrendered by the investors. Again all the documents evidencing the payments to the investors have already been placed before the Hon’ble Court.
Since the majority of the investors of Sahara do not have the bank accounts and they had made the investments in cash, therefore they were refunded and paid in cash only.
It is further to note, that SEBI and other statutory authorities permit the cash transaction up to the tune of Rs. 50,000/- in cash, and the average investment in the OFCD was around Rs. 8,000/-. Thus repayments were done in cash.