On Tuesday, November 14, 2023, Subrata Roy, the founder of the Sahara Group, died in Mumbai after a prolonged illness. Roy was admitted to Kokilaben Dhirubhai Ambani Hospital & Medical Research Institute (KDAH) on Sunday following a decline in health. The 75-year-old Sahara chief suffered a cardiac arrest.
Subrata Roy is survived by his wife Swapna Roy and two sons, Sushanto Roy and Seemanto Roy, who live abroad.
In a statement, the Sahara group said, “Saharasri ji an inspirational leader and visionary, passed away on 141h 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.”
Subrata Roy was born in 1948 in Araria, Bihar, and started Sahara India Pariwar in 1978. Subrata Roy reportedly started the company with a capital of Rs 2000. Over time Sahara India Pariwar went on to become the second-largest employer in India after Indian Railways, boasting a workforce of around 1.2 million people and claiming to have more than 9 crore investors, which is about 13% of all households in the country.
Through ambitious projects like Aamby Valley City and acquisitions of renowned hotels like the Plaza in New York City and the Grosvenor House Hotel in London, Roy’s Sahara company rose to national prominence. With projects like Sahara TV—later renamed Sahara One—and the Hindi-language newspaper Rashtriya Sahara, the group also achieved notable success in the media sector.
Over time Subrata Roy emerged as India’s most flamboyant and enigmatic tycoon who had a fleet of private jets and helicopters and one of his mansions is modelled on the White House. He remained in the news for his larger-than-life image, colourful lifestyle and considerable political connections.
Things, however, turned awry for the Sahara chief in 2011 when a financial scandal involving the Sahara Group came to light. In what came to be known as the Sahara Scam, Roy was accused of duping his investors of Rs 24,000 crore.
2011 Sahara Chit Fund Scam
The Sahara scam was one of the biggest financial frauds in India’s history. It involved a large amount of money, regulatory violations, and a dramatic legal battle. The Rs 24000 crore fraud came to light in 2011 when a chartered accountant named RoshanLal raised concerns about the discrepancies in housing bonds issued by two Sahara companies, Sahara India Real Estate Corporation (SIREC) and Sahara Housing Investment Corporation (SHIC), as these companies raised significant amounts of money without proper accountability.
The Securities and Exchange Board of India (SEBI) accused Sahara of raising funds through Optionally Fully Convertible Debentures (OFCDs) without proper approvals. This led to a directive from SEBI in 2011 for two Sahara companies to refund the money raised from investors.
The legal battle culminated in Roy’s arrest in March 2014, and he spent time in Tihar Jail before being released on parole in 2017. The scandal tarnished the reputation of the Sahara group and Roy.
Recently, on the 18th of Jul 2023, Union Home Minister and Minister of Cooperation, Amit Shah launched the Central Registrar of Cooperative Societies (CRCS)-Sahara Refund Portal in New Delhi. It was developed by a subsidiary of IFCI Ltd. to help over 10 crore depositors of Sahara Group claim their refund in a timely and transparent manner.
