Sahara Group founder Subrata Roy passes away at 75 in Mumbai

Sahara Group's Subrata Roy passed away at the age of 75 in Mumbai on Tuesday due to cardiorespiratory arrest. Roy was the founder and chairman of the Sahara India Pariwar, a conglomerate with diversified business interests. Born on June 10, 1948, in Bihar's Araria, Subrata Roy played a significant role in building the Sahara Group into a major business entity. 

According to the company statement, Roy passed away at 10.30 pm due to cardiorespiratory arrest following an extended battle with complications arising from metastatic malignancy, hypertension, and diabetes.  He was admitted to Kokilaben Dhirubhai Ambani Hospital & Medical Research Institute in Mumbai on Sunday after his health deteriorated, it added.  

"It is with profound sadness that Sahara India Pariwar informs the demise of our Hon’ble ‘Saharasri’ Subrata Roy Sahara. Saharasri ji an inspirational leader and visionary, passed away on 14th November 2023 at 10.30 pm due to cardiorespiratory arrest following an extended battle with complications arising from metastatic malignancy, hypertension, and diabetes," Sahara India Pariwar said in a statement.  

"His loss will be deeply felt by the entire Sahara India Pariwar. Saharasri ji was a guiding force, a mentor, and a source of inspiration for all who had the privilege to work alongside him," the group said.

Sahara India Pariwar has interests in various sectors, including finance, real estate, infrastructure and housing, media and entertainment, tourism, and hospitality. The group has been involved in projects ranging from housing development to organising mega-events.

Roy studied mechanical engineering at the Government Technical Institute in Gorakhpur. He started his first business in Gorakhpur before taking over Sahara Finance, a chit-fund company, in 1976. By 1978, he had transformed it into Sahara India Pariwar, which grew to become one of India's largest conglomerates.

Roy built the Sahara empire starting with Rs 2,000 and a Lambretta scooter in the late 1970s. He built a profile that brought the country's prime minister, state chief ministers, actors, and cricketers to attend his extravagant parties.

Having scripted one of the most famous rags-to-riches stories of the country, Roy went on to expand his business across various sectors ranging from finance, housing, manufacturing, aviation and the media and became a household name.

The group initiated the ambitious Aamby Valley City project near Pune in the late 1990s, and entered the television space with Sahara TV, later renamed Sahara One. In the 2000s, Sahara made international headlines with the acquisition of iconic properties such as London's Grosvenor House Hotel and New York City's Plaza Hotel.

Under his leadership, Sahara also sponsored the Indian cricket and hockey teams and owned a Formula One racing team.

Weddings of his two sons some two decades ago are still among the biggest parties ever seen in India. He lived in Lucknow.

His troubles began in November 2010 when stock market regulator Sebi asked two entities of Sahara Group not to mobilise funds from equity markets or from issuance of any security to the public while restraining Roy from approaching the public for raising money.

Roy was arrested in 2014 on the orders of the Supreme Court after he failed to appear before it in a contempt case arising out of non-refund of more than Rs 20,000 crore to investors by two of his companies.

He was later granted bail but troubles continued for his various businesses.

Two Sahara Group companies -- Sahara India Real Estate Corporation (SIRECA) and Sahara Housing Investment Corporation -- raised funds in 2007-08 through a debenture instrument OFCD.

Later in June 2011, the regulator asked the two group entities to refund money collected from investors through Optionally Fully Convertible Debentures (OFCD) along with the return. After a long process of appeals and cross-appeals, the Supreme Court had ordered in 2012 refund of deposits of its investors along with 15 per cent interest.

Sahara was eventually asked to deposit an estimated Rs 24,000 crore with Sebi for further refund to investors, though the group always maintained it amounted to ''double payment'' as it had already refunded more than 95 per cent of investors directly.

Once asked for proof of repayment, Roy famously sent across 100 truckloads of documents to Sebi, triggering a unique warehousing crisis for the regulator.

In another incident, a man from Gwalior threw ink on Roy's face and called him a thief when he was brought to the Supreme Court in his trademark waistcoat and tie amid chaotic scenes.

With inputs from PTI