Creating an empire from nothing is a activity that goes down in historical past with lengthy remembrance. Subrata Roy is precisely identified for it. When he was incomes Rs 1,500 per thirty days in 1978 on the age of 30, he by no means thought his fortune would develop into billions of {dollars} and his firm would turn out to be one of many largest within the nation.
Born in Bihar’s Araria in 1948, Roy began his journey as a businessman in 1976 when he joined the chit fund firm Sahara Finance. After two years, he later took over the management of the corporate and revamped its monetary mannequin in 1978, impressed by the older Peerless Group.
The Businesses
In the Nineteen Nineties decade, Roy shifted to Lucknow, which turned the bottom of the Sahara group that after grew into India’s largest group. He studied at Holy Child Institute in Kolkata and later did mechanical engineering at Government Technical Institute, Gorakhpur, the place he began his first enterprise.
Starting on a modest scale with a capital of solely Rs 2,000, the group later grew into India’s main conglomerate and diversified into numerous sectors, together with monetary providers, media, actual property, training, leisure, hospitality, tourism, and healthcare.
He operated an unlimited variety of companies akin to Aamby Valley City, Sahara Movie Studios, Air Sahara, Uttar Pradesh Wizards, and Filmy, amongst others.
He ventured into media in 1992 by organising the Hindi-language newspaper Rashtriya Sahara. He additionally established digital media channel Sahara TV, which was later in 2000 renamed as Sahara One.
In 2004, Sahara was the second-largest employer in India solely after Indian Railways and turned one of many largest conglomerates within the nation. Till 2014, he had a enterprise empire value greater than Rs 1.5 lakh crore.
The Sahara Group chief went on to personal landmark international properties, together with London’s iconic Grosvenor House (he bought in 2010) and New York’s Plaza Hotel (which Roy purchased in 2012).
Known to have mates among the many well-known and highly effective throughout the fields of politics and Bollywood, Sahara additionally sponsored the Indian cricket and hockey groups and owned a Formula One racing workforce.
The weddings of his two sons some 20 years in the past are nonetheless among the many greatest events ever seen in India. He lived in Lucknow.
Sahara ventured into training with a digital training platform Edunguru. Subrata Roy in June 2019 additionally introduced his foray into the car sector below the model title ‘Sahara Evols’. The Sahara Evols enterprise will supply a variety of electrical autos (EVs) together with superior allied providers.
Sahara has a workforce of about 1.2 million together with salaried workers, consultants, area staff, and brokers, amongst others. According to Sahara India Pariwar’s web site, “The most fair value of our assets is worth Rs 2,59,900 crore.”
The Troubles
Subrata Roy’s troubles began in November 2010 when inventory market regulator Sebi requested two entities of Sahara Group to not mobilise funds from fairness markets or from issuance of any safety to the general public whereas restraining Roy from approaching the general public for elevating cash.
Roy was arrested in 2014 on the orders of the Supreme Court after he failed to seem earlier than it in a contempt case arising out of non-refund of greater than Rs 20,000 crore to buyers by two of his corporations.
He was later granted bail however troubles continued for his numerous companies.
Two Sahara Group corporations — Sahara India Real Estate Corporation (SIRECA) and Sahara Housing Investment Corporation — raised funds in 2007-08 via a debenture instrument OFCD.
Later in June 2011, the regulator requested the 2 group entities to refund cash collected from buyers via Optionally Fully Convertible Debentures (OFCD) together with the return.
After a protracted technique of appeals and cross-appeals, the Supreme Court had ordered in 2012 refund of deposits of its buyers together with 15 per cent curiosity.
Sahara was ultimately requested to deposit an estimated Rs 24,000 crore with Sebi for additional refund to buyers, although the group at all times maintained it amounted to “double payment” because it had already refunded greater than 95 per cent of buyers immediately.
Once requested for proof of reimbursement, Roy famously despatched throughout 100 truckloads of paperwork to Sebi, triggering a novel warehousing disaster for the regulator.
In one other incident, a person from Gwalior threw ink on Roy’s face and known as him a thief when he was delivered to the Supreme Court in his trademark waistcoat and tie amid chaotic scenes.
The Sahara Group had earlier stated it has at all times constructed its companies by productively channelizing human capital unfold throughout India and giving employment and work at individuals’s doorstep.
Subrata Roy on November 14, 2023, died as a consequence of a cardiorespiratory arrest at a personal hospital in Mumbai on Tuesday after a protracted sickness on the age of 75, after a protracted battle with problems arising from metastatic malignancy, hypertension and diabetes.
(With Inputs From Agencies)
