Subrata Roy, the founder and chairman of Sahara India Pariwar, passed away on November 14, 2023, at the age of 75. He was suffering from a prolonged illness and was admitted to a private hospital in Mumbai, where he died due to a cardiorespiratory arrest1.
Roy was one of the most influential and controversial businessmen in India, who built a vast empire that spanned various sectors, such as finance, media, entertainment, hospitality, real estate, and sports. He was known for his flamboyant lifestyle, his political connections, and his philanthropic activities. He was also embroiled in a long-running legal battle with the Securities and Exchange Board of India (SEBI) over the refund of thousands of crores of rupees to the investors of two of his companies.
Roy was born in a Bengali Hindu family in Araria, Bihar, on
June 10, 1948. His parents migrated from East Bengal (now Bangladesh) and
settled in Gorakhpur, Uttar Pradesh. Roy studied mechanical engineering at the Government Technical Institute, Gorakhpur, and started his first business of
making salted snacks on a Lambretta scooter. He later joined Sahara Finance, a
struggling chit fund company, in 1976, and took it over in 1978. He changed its
financial model and focused on small investors, such as tea stall owners and
rickshaw pullers, who deposited as little as Re 1 a day. He moved to Lucknow in
the 1990s, which became the base of his group.
From there, he expanded his business into a conglomerate that claimed to have more than 5,000 establishments and 1.2 million employees under the Sahara India umbrella. He also ventured into media, launching the Hindi newspaper Rashtriya Sahara in 1992, and the television channel Sahara TV (later renamed Sahara One) in 2000. He also started three weeklies: Sahara Time (English), Sahara Samay (Hindi), and Sahara Aalmi (Urdu). He acquired Air Sahara, a full-scale scheduled commercial airline, in 2000, and sold it to Jet Airways in 2006 for over $500 million. He invested in the premium hospitality segment, buying a controlling stake in New York’s landmark Plaza Hotel and London’s iconic Grosvenor House Hotel. He also owned an IPL team, Pune Warriors India, which was terminated by the BCCI in 2013.
Roy was also known for his lavish events and extravagant gestures. He built a sprawling complex in Lucknow, called Sahara Shaher, which hosted many celebrities, politicians, and dignitaries. He organized mass weddings for thousands of couples, sponsored the Indian cricket and hockey teams, and donated generously to various causes. He also claimed to have written two books: Life Mantras and Think With Me, which he said were bestsellers.
However, Roy’s fortunes took a turn for the worse when he came under the scanner of SEBI in 2009. The market regulator alleged that two of his companies, Sahara India Real Estate Corporation and Sahara Housing Investment Corporation, had raised over Rs 24,000 crore from nearly three crore investors through illegal and unregistered collective investment schemes. SEBI ordered the companies to refund the money to the investors with interest. Roy challenged the order in various courts but failed to comply with the directions. He was summoned by the Supreme Court several times, but he did not appear. He was finally arrested on February 28, 2014, after the Supreme Court issued a non-bailable warrant against him. He spent over two years in Tihar Jail before being released on parole in May 2016, following the death of his mother. He remained on parole till his death, while his companies continued to face legal hurdles and financial troubles.
Roy’s death has evoked mixed reactions from different
quarters. While his family, friends, and loyalists have expressed grief and
paid tributes to him, his critics and detractors have questioned his legacy and
accountability. His investors, who are still waiting for their money, have
expressed hope that the legal process will not be affected by his demise. His
group, which is facing a crisis of confidence and credibility, has vowed to
continue its vision and mission. Roy’s life story, which is full of highs and
lows, successes and failures, dreams and controversies, is a saga that will be
remembered for a long time.
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