Head of Sahara Group Subrata Roy died on Tuesday at 10.30 pm due to cardiorespiratory arrest due to prolonged illness.
Sahara Group founder Subrata Roy died on Tuesday evening at the age of 74 in Mumbai after battling a long illness. He was admitted to Kokilaben Dhirubhai Ambani Hospital and Institute of Medical Research on Sunday and succumbed to cardiorespiratory arrest due to complications of metastatic malignancy, hypertension, and diabetes. He is survived by his wife, son, and brother.
More About Subrata Roy
⦁ Subrata Roy Sahara was born on June 10, 1948, in Araria, Bihar, and studied mechanical engineering at the Government Institute of Technology, Gorakhpur. His entrepreneurial journey began in Gorakhpur where he started his own business. He later headed Sahara Finance, which was originally a fund company in 1976. By 1978, he successfully transformed it into Trans-Saharan India Pariwar, a large Indian conglomerate.
⦁ Subrata Roy was able to expand the empire to include various sectors such as finance, real estate, media, and hospitality. Sahara India Pariwar managed many projects including Aamby Valley City, Sahara Movie Studios, Air Sahara, Uttar Pradesh Wizards, and Filmy. The conglomerate was involved in finance, real estate, infrastructure, housing, media, entertainment, travel and hospitality. Their projects ranged from residential construction to the organization of important events.
⦁ The Sahara Group forayed into media with the launch of the Hindi-language newspaper Rashtriya Sahara in 1992. They later expanded their presence in the television industry with Sahara TV, which was later renamed Sahara One.
⦁ Awards and Recognitions: Subrata Roy received accolades such as the Businessman of the Year Award and Best Industrial Company Award in 2002. He was awarded the Vasishta Rastriya Udaan Samman for publication leadership in 2010, Rotary International’s Professional Award in 2010 Karm veer Samman. 1995, Udyam Shree 1994, Baba-E-Rozgar Award 1992, and National Citizen Award 2001. He was recognized as one of the 10 most influential businessmen in India in 2012 by India Today magazine.
⦁ In 2014, the Supreme Court of India ordered the arrest of Subrata Roy for failing to appear in court in connection with a dispute with the Securities and Exchange Board of India (SEBI). This led to a protracted court battle during which he spent time in Tihar Jail. He was later paroled.
What was the case of SEBI vs. Sahara Group?
In 2011, SEBI ordered Sahara India Real Estate Corporation Ltd (SIRECL) and Sahara Housing Investment Corporation Ltd (SHICL) to replace funds raised from investors through voluntary fully convertible debentures (OFCDs), finding that the companies’ fundraising violated regulatory norms.
After a long series of appeals and cross-appeals, the Supreme Court on August 31, 2012, upheld the SEBI mandate and ordered the two firms to return the raised funds to investors along with 15 percent interest. Later, Sahara was ordered to deposit an estimated ₹24,000 crore with SEBI to further compensate investors, despite the group’s claim that it had already directly refunded more than 95 percent of investors and number of the funds, considering it a “double payment”.
As for the case involving Roy, a man from Gwalior once branded him a thief and splashed ink on his face when he accompanied him to the Supreme Court in a signature vest and tie amid chaotic scenes.
Roy was arrested in 2014 after he failed to appear before the Supreme Court in a contempt case over two of his companies not repaying ₹20,000 to investors. Despite being later granted bail, his businesses faced constant challenges.
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