Sahara Group Founder Subrata Roy Dies At 75 After Long Illness
In the precincts of a Mumbai hospital, on a Tuesday, Subrata Roy, architect of the Sahara Group, succumbs to a cardiorespiratory arrest. The company’s statement attributes this tragic event to a prolonged skirmish with complications stemming from metastatic malignancy, hypertension, and diabetes. The canvas of his life closes at 75.
Roy, the self-anointed Chief Guardian of Sahara India Pariwar, etched his journey from a humble inception in 1978 with a mere capital of Rs 2000. Over decades, he sculpted Sahara India, boasting 9 crore investors, a net worth of Rs 259,900 crore, 5,000 establishments, and a sprawling 30,970 acres of land, as proclaimed on the Group’s website.
His empire’s genesis lay in accumulating deposits from millions of economically marginalized and rural Indians, bereft of formal banking access. However, the narrative unraveled when market regulator SEBI initiated action. A colossal case involving the collection of over Rs 24,000 crore from three crore individuals ensued.
An entrepreneur of ambition, Roy once commanded an airline, a Formula One team, an IPL cricket team, opulent hotels in London and New York, and financial enterprises. His airline, Air Sahara, changed hands to Jet Airways, subsequently meeting its demise.
His events hosted film stars, and he cultivated friendships across political spectra. Yet, his identity intertwined more with Mulayam Singh Yadav and his Samajwadi Party over time. The tenure of Mulayam Singh as Chief Minister of UP in December 1993 deepened Roy’s connection. Amar Singh, a confidant of Mulayam Singh, also shared close ties with Roy.
Roy’s legal battles reached a zenith when he faced imprisonment on March 4, 2014, owing to a default on an outstanding Rs 10,000 crore. Release terms mandated a payment of Rs 5,000 crore in cash and Rs 5,000 crore through a bank guarantee. In 2013, Sahara dispatched 127 trucks laden with 31,669 cartons of over three crore application forms and two crore redemption vouchers to the SEBI office.
Over two years behind bars culminated in parole in 2016. The Supreme Court, however, re-incarcerated him over property status concerns. The auction list featured properties largely annexed by the Income Tax Department. In November 2020, the SEBI petitioned the Supreme Court to annul Roy’s parole unless he settled a sum of Rs 62,600 crore.
Roy’s clash with the market regulator escalated concerning Optionally Fully Convertible Debentures issued by Sahara India’s two companies. In 2010, SEBI mandated Sahara to refund money to investors, concurrently prohibiting two Sahara companies and Roy from public fundraising.
In 2014, reports surfaced that only 4,600 investors stepped forward for the refund, and the regulator struggled to trace the remainder.
In the aftermath of his passing, Sahara India’s statement acknowledges, “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.”
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