Sahara uses small savers to keep Aamby Valley afloat: The Sahara conglomerate continues to be funnelling cash from small-scale savers to finance among its largest jobs, a luxury resort south of Mumbai, according to records Reuters.
The credit cooperatives investments into Aamby Valley are legal. Replying to Reuters queries, a Sahara Credit Cooperative Society Ltd spokesman said via e-mail that “all mandatory acceptances” were in place as well as the investments wouldn’t put investors in danger. He didn’t elaborate. Sahara Credit Cooperative had shares worth Rs 1,039 crore in Aamby its 2014 yearly report.
The Supreme Court will decide whether to make a liquidator to auction off some of the properties in Sahara to refund investors in the savings deposit scheme that is restricted. A senior official agriculture ministry official said Sahara could be “abusing provisions of the law” that regulate credit cooperatives by investing a number of the cooperative funds into Aamby Valley.
When they receive any criticism with this the department will consider the issue, the official said.
Sahara continues to be struggling financially since the Supreme Court ordered it in 2014 to reimburse investors in 200811 Sahara time deposit strategy that it declared was prohibited. Creator Subrata Roy continues to be in jail for the previous 22 months for not complying with all the order of the Court.
Reuters has spoken to dozens of savers who said they had not been given their money when their deposits matured by Sahara. Rather, they whined, division officials and Sahara’s representatives attempted to convince them to change their savings deposits that were matured into new schemes offered through credit cooperatives. In a e-mail, Sahara said it was unaware of this practice.
The high valuation claim of Sahara and the flagging fiscal profile of the job contrast: Aamby Valley posted an after tax gain of Its 9 crore in the year ended March 2013.