Subrata Roy, the Indian billionaire and founder of enterprise conglomerate Sahara Group, died on the age of 75 on the Kokilaben Dhirubhai Ambani Hospital in Mumbai on Tuesday after a protracted sickness. A distinguished determine within the Indian enterprise panorama, Roy’s empire prolonged to a number of sectors, together with actual property, leisure and retail.
“It is with profound sadness that Sahara India Pariwar informs the demise of our Hon’ble ‘Saharasri’ Subrata Roy Sahara, Managing Worker and Chairman, Sahara India Pariwar. 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,” stated the Sahara Group in a press release.
Many distinguished figures, similar to Samajwadi Party chief Akhilesh Yadav and Bollywood actor Anupam Kher expressed their condolences on Roy’s loss of life. His mortal stays will likely be delivered to Sahara metropolis in Lucknow at this time the place his final rites will likely be carried out.
A rags to riches story
Although the origins of Sahara India Pariwar return to 1978 as a small firm dealing in finance, the story of Roy’s enterprise empire goes again a lot earlier when he offered salted snacks on his Lambretta scooter after the loss of life of his father.
Born in a Bengali household in Bihar in 1948, Subrata Roy was the elder son of Sudhir Chandra Roy and Chhabi Roy. He studied mechanical engineering from a authorities institute in Gorakhpur, the place he additionally began his first enterprise. However, that and one other enterprise together with his spouse Swapna Roy, failed.
In 1978, Roy established the Sahara Group, which allowed small traders to speculate cash and obtain assured revenue in return, in Gorakhpur. The firm began with a modest capital of solely Rs 2,000 however went to develop into one of the biggest Indian conglomerates with 9 crore traders and shoppers and a internet price of Rs 259,900 crore.
Over the many years since its formation, the Sahara Group diversified into completely different sectors, together with actual property, media, and aviation. The Sahara Group additionally started to function quite a few companies like Aamby Valley City, Sahara Movie Studios, Air Sahara and extra.
The peak of Sahara Group
The Sahara Movie Studios produced a number of large Bollywood hit motion pictures, similar to Wanted and Sarkar. It additionally owned a information channel, an leisure channel, a film channel and newspapers and magazines in numerous languages.
As the online price grew, Sahara additionally acquired New York’s Plaza Hotel and the Grosvenor House Hotel in London. Roy’s firm additionally sponsored the Indian cricket staff till 2013 and acquired the Pune franchise of the Indian Premier League (IPL) until the group pulled out in 2018. Sahara additionally sponsored the Indian hockey staff.
Meanwhile, Roy’s flamboyance additionally grew with the success of his firm. He turned affiliated with high-profile politicians like Samajwadi Party’s Mulayam Singh Yadav, company personalities and film stars like Amitabh Bachchan.
Roy’s empire grew so giant that he was known as the most important employer – with 1.2 million employees – behind the Indian Railways. The marriage of his two sons in his 270-acre mansion within the presence of high personalities from politics and the movie business far eclipsed the everyday Bollywood-style weddings.
The Fall of Subrata Roy
Roy’s life was not with out controversy – and authorized controversies hit him very onerous for the reason that firm ran right into a sequence of monetary troubles within the Nineties. In 2011, the Sahara Scam made headlines, when the Securities and Exchange Board of India (SEBI) accused Sahara of elevating funds by means of Optionally Fully Convertible Debentures (OFCDs) with out correct approvals.
Since Roy’s firm centered on investments by poor and rural Indians who didn’t have a lot entry to formal banking companies, the market regulator stated that Sahara engaged in practices that have been declared unlawful. Roy confronted allegations of fund mismanagement of Rs 24,000 crore from three crore traders and the SEBI directed two Sahara corporations – Sahara India Real Estate Corporation Ltd (SIREL) and Sahara Housing Investment Corporation Ltd (SHICL) – to refund the cash. These corporations have been additionally barred from elevating cash.
Additionally, the group was accepting OFCDs from traders towards money as an alternative of cheques or demand drafts, as mandated beneath the regulation. This led to a routine enquiry that quickly culminated within the firm’s collapse. It was additionally discovered that Sahara’s cash was used to develop 10,600 acres of Aamby Valley luxurious township in Maharashtra.
The Sahara Group earlier began publishing investments that branded SEBI as ‘irresponsible’. A prolonged authorized battle ensued that ended up on the doorways of the Supreme Court, on the finish of which Roy acquired one of the most important blows of his life.
Roy’s imprisonment
In 2014, the Supreme Court ordered the corporate to return all cash to the depositors with an curiosity of 15% and Roy was arrested and imprisoned. The courtroom stated that the billionaire wouldn’t be launched till he introduced in s 5,000 crore in money and Rs 5,000 crore by means of financial institution assure.Â
Roy spent greater than two years within the Tihar jail and was launched in 2017 on parole. Even after that, his monetary and authorized troubles didn’t die down. He was despatched again to jail on the problem of property standing and most of his properties have been connected by the Income Tax Department.Â
In November 2020, the SEBI requested the Supreme Court to cancel Roy’s parole if he didn’t pay up Rs 62,600 crore. The Sahara scandal considerably ruined the repute of the Sahara Group and Roy himself, who earlier loved a lavish way of life.
After Roy’s loss of life, the undistributed funds totalling over Rs 25,000 crore mendacity with the capital markets regulator Sebi’s account have come again into focus. Meanwhile, the Centre in August began the method to refund ₹ 5,000 crore of depositors whose funds are struck in 4 cooperative societies of Sahara Group.
Even after his parole, RoIn his later years, Roy sought extra enterprise ventures similar to Sahara Evols, which supplied a spread of electrical autos, and plans to enter the web training sector with Edunguru.
ALSO READ |Â Subrata Roy, Sahara Group’s founder, dies at 75 in Mumbai’s Kokilaben Ambani Hospital
