Sahara Group chief Subrata Roy, who once ran an empire, dies at 75

Making a modest start in 1978 with a capital of only Rs 2000, he built Sahara India over the decades. The Group, on its website, claims it has 9 crore investors and customers, a networth of Rs 259,900 crore, 5,000 establishments and 30,970 acres of land bank.

Sahara chief Subrata Roy arrives to appear in the Supreme Court for a hearing in a case against him filed by the Securities and Exchange Board of India (SEBI) over a dispute of returning money to its investors, in New Delhi. (Express photo)

Roy built his empire by collecting deposits from millions of poor and rural Indians with limited or no access to formal banking services. The cookie, however, crumbled after market regulator SEBI moved against him. The case involved collection of over Rs 24,000 crore from three crore individuals.

An ambitious businessman, Roy once owned an airline, a Formula One team, an IPL cricket team, plush hotels in London and New York, and financial companies. He sold his airline, Air Sahara, to Jet Airways which itself collapsed later.

He hosted film stars at his events and had “friends” across political parties. But over the years, he came to be identified more with Mulayam Singh Yadav and his Samajwadi Party. When Mulayam Singh became the Chief Minister of UP again in December 1993, Roy’s relationship grew deeper. He was also closely associated with Amar Singh, a close associate of Mulayam Singh.

Dr Deepak Chopra (extreme left) seen along with actor Amitabh Bachchan, Subrata Roy Sahara, political leader Amar Singh at the luanch of Environmental Excellence Centre at Amby valley. (Express archive)

Roy was sent to jail on March 4, 2014, for not paying an outstanding amount of Rs 10,000 crore. The court said he would not be released until he brought in Rs 5,000 crore in cash and Rs 5,000 crore by way of bank guarantee. In 2013, Sahara sent 127 trucks containing 31,669 cartons of over three crore application forms and two crore redemption vouchers to the SEBI office.

He stayed in jail for over two years and was out on parole in 2016. The Supreme Court sent him back to jail on the issue of property status. Most of the properties in the auction list were attached by the Income Tax Department. The SEBI asked the Supreme Court to cancel Roy’s parole if he didn’t pay up Rs 62,600 crore in November 2020.

Roy had a running battle with the market regulator on the issue of Optionally Fully Convertible Debentures issued by the two companies of Sahara India. The SEBIS ordered Sahara to refund the money to investors and banned two Sahara companies and Roy from raising money from the public in 2010.

Mother Teresa addressing the audience at the house granting ceremony held at the St. Xavier’s Church Compound, Vile Parle, Bombay. Seated next to the mother is Sahara India Chairman Subrata Roy Sahara. (Express archive photo)

In 2014, it was reported that only 4,600 investors came forward to collect the refund. The regulator was unable to trace the investors.

Following his death, Sahara India, in a statement, said, “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.”