Wwhy Sahara Owner Subrata Roy is in Jail ?

Remembering Subrata Roy: A Legacy of Entrepreneurship, Challenges, and Contributions

On a somber Tuesday night in Mumbai, Subrata Roy, the dynamic founder of the Sahara Group, breathed his last at the age of 74. His passing, attributed to cardiorespiratory arrest, marked the end of a journey that encompassed visionary entrepreneurship, diversification across sectors, legal battles, and notable contributions to the Indian business landscape. Survived by his wife, son, and brother, Subrata Roy leaves behind a legacy that has shaped the conglomerate he founded and has had a profound impact on various industries.

Early Life and Entrepreneurial Beginnings:

Subrata Roy Sahara, born on June 10, 1948, in Araria, Bihar, embarked on his entrepreneurial journey in Gorakhpur. After pursuing mechanical engineering at the Government Technical Institute, he took charge of Sahara Finance in 1976. This marked the inception of his transformative leadership, turning a chit-fund company into the formidable Sahara India Pariwar by 1978.

Diversification and Business Expansion:

Under Subrata Roy’s guidance, Sahara India Pariwar expanded its influence far beyond its financial roots. The conglomerate ventured into diverse sectors, becoming a powerhouse in finance, real estate, media, and hospitality. Aamby Valley City, Sahara Movie Studios, Air Sahara, Uttar Pradesh Wizards, and Filmy are among the many ventures that bore the Sahara imprint. The group’s footprint extended across finance, real estate, infrastructure, housing, media, entertainment, tourism, and hospitality, showcasing Subrata Roy’s ability to navigate varied industries.

Media Ventures:

Sahara Group’s foray into media began in 1992 with the launch of Rashtriya Sahara, a Hindi newspaper. Subsequently, the group expanded its presence in the television industry with Sahara TV, later rebranded as Sahara One. These ventures demonstrated Roy’s keen understanding of the importance of media in India’s dynamic business landscape.

Awards and Recognitions:

Subrata Roy’s contributions did not go unnoticed. Over the years, he received numerous accolades, including the Businessmen of the Year Award and the Best Industrialist Award in 2002. In 2010, he was honored with the Vishisht Rashtriya Udaan Samman, adding to a list of recognitions that underscored his impact on the business community. India Today magazine recognized him as one of India’s 10 most influential businessmen in 2012.

Legal Battles and Supreme Court Case:

The latter part of Subrata Roy’s life was marred by legal challenges, most notably the case with the Securities and Exchange Board of India (SEBI). In 2011, SEBI directed Sahara India Real Estate Corporation Ltd (SIRECL) and Sahara Housing Investment Corporation Ltd (SHICL) to reimburse funds acquired from investors through Optionally Fully Convertible Bonds (OFCDs). This directive, deemed a violation of regulatory norms, initiated a prolonged legal battle.

On August 31, 2012, the Supreme Court upheld SEBI’s mandate, instructing the two companies to refund the collected funds to investors along with a 15 per cent interest. Subsequently, Sahara was ordered to deposit an estimated ₹24,000 crore with SEBI for further reimbursement to investors. Despite Sahara’s assertion that it had already directly refunded over 95 per cent of the investors’ funds, considering it as “double payment,” the legal battle persisted.

In 2014, the Supreme Court ordered Subrata Roy’s detention for failing to appear in court in connection with the SEBI dispute. This led to a protracted period of incarceration in Tihar Jail. Despite being granted bail later, his businesses continued to face ongoing challenges, underscoring the complexities of navigating legal disputes at such a scale.

A Complex Legacy:

Subrata Roy’s legacy is undoubtedly complex, reflecting both the heights of entrepreneurial success and the depths of legal challenges. His ability to build a conglomerate that spanned diverse industries showcased his business acumen. However, the legal battles, particularly with SEBI, brought to light the intricacies and challenges faced by businesses in navigating regulatory frameworks.

Conclusion:

In remembering Subrata Roy, we acknowledge a multifaceted individual who played a significant role in shaping India’s business landscape. His journey, from the streets of Gorakhpur to the helm of a conglomerate, is a testament to his vision and tenacity. As we reflect on his contributions, it is essential to consider both the achievements and challenges, recognizing the intricate interplay between entrepreneurship, regulation, and the legal system. Subrata Roy’s legacy prompts contemplation on the evolving nature of business in India and the complexities faced by those who dare to venture into uncharted territories.