Sahara Group’s visionary founder and chairman, Subrata Roy, breathed his last at the age of 75 in a Mumbai hospital. The news comes after a prolonged battle with illness, as stated in an official company announcement.
Early Life and Entrepreneurial Journey:
Born in Bihar’s Araria in 1948, Subrata Roy’s remarkable journey began in 1978 when he initiated Sahara India Pariwar with a mere capital of ₹2,000. The company’s evolution over the years positioned it as a leader in entrepreneurship, according to information on Sahara’s website.
Geographical Shifts and Headquarters:
After relocating from Bihar to Gorakhpur, Uttar Pradesh, Subrata Roy later moved the headquarters of Sahara Group to Lucknow in the 1990s.
Challenges and the “Sahara Chit Fund Scam”:
Despite the company’s success, Sahara faced significant challenges related to funds, now famously known as the “Sahara chit fund scam.” The legal battles, particularly involving the Securities and Exchange Board of India (SEBI) and the Himachal Pradesh High Court, persisted for years.
Health Struggles and Demise:
Subrata Roy succumbed to a cardiorespiratory arrest, resulting from complications related to metastatic malignancy, hypertension, and diabetes. He had been admitted to Kokilaben Dhirubhai Ambani Hospital in Mumbai after a decline in his health.
Legacy and Company Commitment:
Sahara Group expressed its commitment to upholding Subrata Roy’s legacy, vowing to honor his vision in driving the organization forward. The company underlined that his loss would be deeply felt within the entire Sahara India Pariwar.
Financial Repercussions and SEBI’s Role:
The controversy escalated in 2012 when the Supreme Court declared an investor scheme by Sahara illegal. SEBI and the Himachal Pradesh High Court subsequently directed investigations into alleged money laundering by the Lucknow-based group. After protracted legal battles, Sahara was eventually mandated to refund depositors.
Investor Refund Process:
In March, following a Supreme Court order, a website was launched to facilitate the refund process for depositors of the Sahara Group of Cooperative Societies. The court instructed the transfer of ₹5,000 crore from the “Sahara-SEBI Refund Account” to CRCS for depositors invested in the Sahara Cooperative Societies.
Government Assurance and Closure:
The government assured depositors of the refund of funds entangled in the Sahara scam, offering a resolution to a long-standing financial dispute.