The present invention discloses a novel saponification process for the isolation and purification of highly pure carotenoids from different carotenoid rich oleoresin derived from plants and microorganisms without the use of toxic chemicals and hazardous solvents. The hydrolysis is carried out by treating the carotenoid rich oleoresin with a novel mixture of a Fatty alcohol, alkali and a fatty acid without the use of any other solvents. Further the invention explains a process of stabilizing the carotenoids from getting degraded due to high temperature and exposure time during the saponification process. Further the invention discloses an economically viable process of isolating high pure carotenoids with higher yield.