Mumbai, Maharashtra: Subrata Roy, the founder and chairperson of the Sahara India Pariwar, passed away on Tuesday at the age of 75 in Mumbai after battling prolonged illness. He was admitted to Kokilaben Dhirubhai Ambani Hospital & Medical Research Institute in Mumbai on Sunday after his health deteriorated. In a statement, the Sahara Group said Subrata Roy died following an extended battle with complications arising from metastatic malignancy, hypertension, and diabetes. The company called him an ?inspirational leader and visionary” and said, ?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.” Subrata Roy’s life was a true rags-to-riches story, beginning in Bihar’s Araria with just Rs 2,000 in 1976, and building an empire that left an indelible mark on the Indian business landscape. Despite the controversies, his impact on the Indian economy and his role in providing financial services to the unbanked have been significant.
The demise of Sahara Group’s chief Subrata Roy has brought attention back to the undistributed funds totalling over ?25,000 crore held by the capital markets regulator SEBI. He faced multiple regulatory and legal battles in connection with his group firms, which were accused of circumventing regulations with Ponzi schemes, allegations his group always denied. In 2011, SEBI ordered two Sahara Group firms to refund the money raised from nearly 3 crore investors through certain bonds known as Optionally Fully Convertible Bonds (OFCDs). The process to refund ?5,000 crore of depositors’ funds stuck in four cooperative societies of Sahara Group has been ongoing. Cooperation Minister Amit Shah launched the ‘CRCS-Sahara Refund Portal’ to facilitate the return of the money to investors, with around 18 lakh depositors registered on the portal. In March, the government announced that the money would be returned to 10 crore investors of the four cooperative societies within 9 months, following a Supreme Court order directing the transfer of ?5,000 crore from the Sahara-SEBI refund account to the Central Registrar of Cooperative Societies (CRCS)
The Rise of a Visionary
Subrata Roy’s journey is a testament to the power of determination and entrepreneurship. Starting with humble beginnings, he established a vast empire that spanned various sectors, including finance, media, entertainment, and real estate. Subrata Roy’s legacy is a complex tapestry of success, controversy, and resilience. His journey from humble beginnings to the pinnacle of business success, marred by legal battles, makes for a compelling narrative. His impact on the Indian business landscape and the lives of countless individuals through his financial services endeavours will be remembered for years to come.
The Controversies
However, Subrata Roy’s career was not without controversy. The infamous Sahara Scam, where he faced allegations of fund mismanagement amounting to Rs 24,000 crore, tarnished his reputation. The legal battle culminated in his arrest in 2014, and he spent time in Tihar Jail before being released on parole in 2017. Despite the controversies, his influence on the Indian economy cannot be overlooked.
Subrata Roy, often referred to as “Saharasri,” was the founder and chief of the Sahara Group, a conglomerate that made significant strides in various sectors, including finance, media, entertainment, and real estate. Born in Bihar’s Araria, Roy’s entrepreneurial journey began in 1976 with a mere Rs 2,000, and he went on to build an empire that left an indelible mark on the Indian business landscape.
Roy’s career was marred by the infamous Sahara Scam, where he faced allegations of fund mismanagement amounting to Rs 24,000 crore. This led to his arrest in 2014 and subsequent time spent in Tihar Jail before being released on parole in 2017.
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