Produced by: Tarun Mishra Designed by: Mohsin Shaikh
Renowned Indian entrepreneur Subrata Roy, who founded Sahara India Pariwar, passed away on November 14 in Mumbai at the age of 75, succumbing to a prolonged illness
Subrata Roy, born on June 10, 2948 in Bihar’s Araria, came from a family with roots in Dhaka, Bikrampur, East Bengal (now Bangladesh), where his parents belonged to the affluent Bhagyakul Zamindar family. His early education took place at the Holy Child Institute in Kolkata, and subsequently, he pursued mechanical engineering at the Government Technical Institute in Gorakhpur
Commencing with a humble capital of just Rs 2000 in 1978, Subrata Roy laid the foundation of Sahara India Pariwar starting with a small finance company that would later burgeon into a diversified conglomerate
Sahara India Pariwar wielded influence across diverse sectors, including finance, real estate, media, entertainment, hospitality, and retail, establishing itself as a major player in the Indian business landscape. As per the Group's official website, it asserted to have 9 crore investors and customers, a net worth of Rs 259,900 crore, 5,000 establishments, and a land bank spanning 30,970 acres
Subrata Roy constructed his business by gathering deposits from millions of economically disadvantaged and rural Indians who had limited or no access to formal banking services. However, the tables turned when the market regulator SEBI took action against him. The case revolved around the collection of over Rs 24,000 crore from three crore individuals
In 2011, a financial scandal involving the Sahara Group surfaced when discrepancies in housing bonds issued by Sahara India Real Estate Corporation (SIREC) and Sahara Housing Investment Corporation (SHIC) were brought to light by chartered accountant RoshanLal. These companies had raised substantial funds without proper accountability, prompting concerns
The National Housing Bank (NHB) referred the complaint to the Securities and Exchange Board of India (SEBI) for investigation. Subrata Roy contested SEBI's jurisdiction, asserting that the company had submitted its prospectus to the Registrar of Companies (ROC) before issuing the bonds, contending that they were not involved in fraudulent activities
In response, SEBI instructed the two Sahara companies to cease the disputed bond sale and reimburse the investors. Subrata Roy was given a three-month deadline, coupled with a 15% interest rate, to deposit the funds with SEBI. Although he made an initial payment of Rs. 5120 crores, Subrata Roy failed to fulfil the subsequent two instalments, arguing that investors had already been compensated
On March 4, 2014, Subrata Roy was incarcerated for failing to settle an outstanding amount of Rs 10,000 crore. The court stipulated that his release was contingent upon bringing in Rs 5,000 crore in cash and Rs 5,000 crore through a bank guarantee. Remaining behind bars for more than two years, he was granted parole in 2016. However, the Supreme Court later returned him to jail due to concerns about his property status. Many of the properties on the auction list had been seized by the Income Tax Department. In November 2020, SEBI urged the Supreme Court to revoke Roy's parole if he failed to settle the outstanding amount of Rs 62,600 crore
Despite the controversies surrounding the Sahara group, Subrata Roy's imprint on the Indian economy remained indelible. His philanthropic endeavours included substantial contributions to disaster relief during the Uttarakhand floods and unwavering support for the families of Kargil War martyrs
In the wake of his demise, Sahara India conveyed in a statement, “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. He was admitted to Kokilaben Dhirubhai Ambani Hospital & Medical Research Institute (KDAH) on 12th November, 2023 following a decline in health.”