Sahara Group chief Subrata Roy, a towering figure in business and finance, passed away on Tuesday at the age of 75. He succumbed to a cardiorespiratory arrest after an extended battle with complications arising from metastatic malignancy, hypertension, and diabetes. Roy's legacy is marked by a journey from a modest beginning in 1978, with a capital of just Rs 2000, to building Sahara India Pariwar, a conglomerate claiming 9 crore investors, a net worth of Rs 259,900 crore, 5,000 establishments, and 30,970 acres of land.
Roy's empire was founded on collecting deposits from millions of poor and rural Indians, providing financial services where formal banking was limited. However, his fortunes changed when the market regulator SEBI took legal action against him, alleging the collection of over Rs 24,000 crore from three crore individuals.
An ambitious entrepreneur, Roy expanded his business portfolio to include an airline, a Formula One team, an IPL cricket team, luxury hotels in London and New York, and financial companies. Despite initial successes, he faced setbacks, such as selling his airline, Air Sahara, to Jet Airways, which later collapsed.
Known for his political connections, Roy hosted events attended by film stars and maintained relationships across political parties, notably with Mulayam Singh Yadav and Amar Singh. However, his legal troubles escalated in 2014 when he was sent to jail for not paying an outstanding amount of Rs 10,000 crore. The court mandated his release upon bringing in Rs 5,000 crore in cash and Rs 5,000 crore via a bank guarantee.
Roy spent over two years in jail and, despite being granted parole in 2016, faced repeated legal challenges. The Supreme Court sent him back to jail in 2017, citing concerns over his property status, most of which were attached by the Income Tax Department. The SEBI urged the Supreme Court to cancel his parole if he failed to pay Rs 62,600 crore in November 2020.
His conflict with SEBI revolved around Optionally Fully Convertible Debentures, leading to orders for Sahara to refund money to investors and a ban on raising public funds. In 2014, only 4,600 investors came forward to collect refunds, and the regulator struggled to trace others.
Following his death, Sahara India released a statement describing Roy as an "inspirational leader and visionary." He was admitted to Kokilaben Dhirubhai Ambani Hospital & Medical Research Institute on November 12, 2023, due to declining health. Roy's demise marks the end of an era in India's business landscape, leaving behind a complex legacy marked by both entrepreneurial success and legal challenges.