Indian billionaire Subrata Roy, founder of the Sahara Group, died at 75. Starting as a tiny banking firm in 1978, the corporation expanded into real estate, media, and aviation…
After a protracted illness, Indian billionaire and Sahara Group founder Subrata Roy died aged 75 in Mumbai’s Kokilaben Dhirubhai Ambani Hospital on Tuesday. Roy, a renowned Indian businessman, owned real estate, entertainment, and retail.
“Sahara India Pariwar mourns the death of our Hon’ble ‘Saharasri’ Subrata Roy Sahara, Managing Worker and Chairman. The Sahara Group said that Saharasri ji, an outstanding leader and visionary, died on November 14, 2023, at 10:30 pm due to cardiorespiratory arrest after a long fight with metastatic cancer, hypertension, and diabetes.
Roy’s death was mourned by many, including Samajwadi Party leader Akhilesh Yadav and Bollywood star Anupam Kher. Today, his lifeless remains would be carried to Lucknow’s Sahara city for last rituals.
Roy started his business empire by selling salty snacks on his Lambretta bike following his father’s death. Sahara India Pariwar was founded in 1978 as a modest financial firm.
Subrata Roy, Sudhir Chandra Roy and Chhabi Roy’s oldest son, was born in 1948 in Bihar. He began his first firm in Gorakhpur after studying mechanical engineering at a government college. A second enterprise with his wife Swapna Roy collapsed.
Roy founded the Gorakhpur-based Sahara Group in 1978 to provide small investors guaranteed income. The firm began with Rs 2,000 and became one of the greatest Indian conglomerates with 9 crore investors and clients and Rs 259,900 crore in net value.
Since its founding, the Sahara Group has expanded into real estate, media, and aviation. The Sahara Group also ran Aamby Valley City, Sahara Movie Studios, Air Sahara, and others.
Sahara Movie Studios produced Bollywood hits like Wanted and Sarkar. It possessed news, entertainment, movie, and multilingual publications and periodicals.
Sahara bought New York’s Plaza Hotel and London’s Grosvenor House Hotel as her wealth expanded. Roy’s firm sponsored the Indian cricket team till 2013 and owned the Pune IPL franchise until 2018. The Indian hockey squad was sponsored by Sahara.
Roy’s flamboyance expanded with his company’s success. He allied himself with politicians like Mulayam Singh Yadav, business leaders, and actors like Amitabh Bachchan.
Roy’s empire employed 1.2 million people, second only to the Indian Railways. The marriage of his two sons at his 270-acre house in front of politicians and film stars went beyond Bollywood weddings.
Subrata Roy Falls
Since the company’s 1990s financial problems, Roy faced legal issues. After SEBI accused Sahara of obtaining money via OFCDs without authorization in 2011, the Sahara Scam grabbed news.
Roy’s firm concentrated on investments by impoverished and rural Indians without access to official banking institutions, therefore the market regulator concluded Sahara participated in unlawful acts. Roy was accused of mismanaging Rs 24,000 crore from three crore investors, and the SEBI ordered two Sahara businesses, SIREL and SHICL, to repay the money. These firms couldn’t raise funds either.
Instead of checks or demand drafts, the organization accepted OFCDs from investors against cash as required by law. A regular investigation led to the company’s demise. Sahara also funded 10,600 acres of Maharashtra’s Aamby Valley luxury development.
Previously, the Sahara Group published ‘irresponsible’ SEBI investments. Roy suffered one of his heaviest life blows during a protracted court struggle that concluded in the Supreme Court.
Roy went to jail
Roy was arrested and imprisoned in 2014 after the Supreme Court ordered the firm to repay all depositor funds plus 15% interest. The court ordered the billionaire to pay Rs 5,000 crore in cash and Rs 5,000 crore via bank guarantee before being freed.
Roy was paroled from Tihar prison in 2017 after almost two years. After then, his financial and legal issues persisted. He was sent back to jail for property status and the Income Tax Department attached most of his holdings.
The SEBI requested the Supreme Court to revoke Roy’s parole if he didn’t pay Rs 62,600 crore in November 2020. The Sahara affair tarnished the Sahara Group and Roy, who lived lavishly.
After Roy’s death, Sebi’s undistributed funds of over Rs 25,000 crore have come under scrutiny. In August, the Centre began refunding ₹ 5,000 crore to depositors in four Sahara Group cooperative societies.
Even after parole, RoRoy then started Sahara Evols, which sold electric cars, and Edunguru, an online education company.
Conclusion
Indian billionaire and Sahara Group founder Subrata Roy died at the age of 75. Starting as a tiny banking firm in 1978, the company grew into real estate, entertainment, and retail. Roy started selling salty snacks on his Lambretta scooter following his father’s death. Roy, born in 1948 in Bihar, studied mechanical engineering at a Gorakhpur government college before starting his first company with his wife Swapna. He founded the Sahara Group in 1978 to provide small investors guaranteed income. The corporation operated Aamby Valley City, Sahara Movie Studios, Air Sahara, and other enterprises in real estate, media, and aviation.
Roy’s company’s success brought him close to politicians, businesspeople, and actors. The largest employer behind the Indian Railways, his enterprise employed 1.2 million people. In the 1990s, three crore investors accused the corporation of mismanaging Rs 24,000 crore. Over two years in Tihar prison, Roy was paroled in 2017. His financial and legal issues persisted, with the SEBI requesting the Supreme Court to suspend his parole if he didn’t pay Rs 62,600 crore.
