Subrata Roy, the chairman of Sahara Group, dies at age 75 following a protracted illness.
A prominent figure in retail, real estate, and finance, Subrata Roy, died of cardiorespiratory arrest at Mumbai’s Kokilaben Hospital amid health issues. Roy encountered disputes and court cases during his career, mostly related to purported Ponzi schemes.
Following a protracted illness, Sahara Group CEO Subrata Roy passed away on Tuesday from a cardiorespiratory arrest at a private hospital in Mumbai, the company announced. He was seventy-five.
Roy built a vast business empire in the retail, real estate, and financial services sectors. However, his group firms were accused of using Ponzi schemes to circumvent regulations, an accusation that his group has consistently denied. As a result, Roy found himself at the center of a heated controversy and faced numerous legal and regulatory battles.
His health declined, and on Sunday he was admitted to the Kokilaben Dhirubhai Ambani Hospital & Medical Research Institute in Mumbai, according to a statement from the company.
It also stated that after a protracted struggle with complications from diabetes, hypertension, and metastatic cancer, he died at the hospital on Tuesday at 10:30 p.m. from a cardiorespiratory arrest.
In a statement, the organization said, “Sahara India Pariwar announces with great sadness the passing of our Hon’ble ‘Saharasri’ Subrata Roy Sahara, Managing Worker and Chairman, Sahara India Pariwar.
The statement described him as an “inspirational leader and visionary” and stated that the entire Sahara India Pariwar would be deeply saddened by his passing. Everyone who had the honor of working with Saharasri ji found inspiration, guidance, and mentorship in him.” It also stated that Sahara India Pariwar is dedicated to honoring Roy’s legacy and vision for leading the organization.
During his peak years, Roy had turned the Sahara Group into a multibillion-dollar business that ranked among the nation’s largest employers.
It was also known that he had connections with prominent figures in Bollywood and politics.
After penning one of the most well-known rags-to-riches tales in the nation, Roy went on to build his empire in a number of industries, including media, manufacturing, finance, housing, and aviation. He also became well-known in these fields.
Sahara owned a Formula One racing team and sponsored the Indian hockey and cricket teams under his direction.
His two sons’ weddings, which took place about 20 years ago, are still among the largest gatherings in Indian history. He called Lucknow home.
His problems started in November 2010 when Roy was prevented from approaching the public for funding. Two Sahara Group entities were instructed by stock market regulator Sebi not to raise money from equity markets or from issuing any securities to the public.
In 2014, Roy was placed under arrest by the Supreme Court on its orders after he neglected to show up for a contempt case involving the non-refund of over Rs 20,000 crore to investors by two of his companies.
Even after he was given bail, his numerous businesses were still having problems.
Using the OFCD debenture instrument, two Sahara Group companies—Sahara India Real Estate Corporation (SIRECA) and Sahara Housing Investment Corporation—raised capital in 2007–08.
Subsequently, in June 2011, the regulatory body requested that the two group companies return any funds acquired from investors via Optionally Fully Convertible Debentures (OFCD) in addition to the return.
In 2012, following an extended period of appeals and cross-appeals, the Supreme Court issued an order for the return of investors’ deposits, plus 15% interest.
Roy famously sent 100 truckloads of documents to Sebi after the regulator requested proof of repayment, which led to a unique warehousing crisis.
In a different incident, Roy was brought before the Supreme Court in his signature waistcoat and tie, to the disarray of a man from Gwalior who spat ink on his face and called him a thief.
The Sahara Group previously stated that it has always developed its companies by effectively utilizing human capital dispersed throughout India and providing jobs and work at people’s doorsteps.
“Bread and butter are thus being supplied by Sahara to over 14 lakh people living in their own towns and villages. After Indian Railways, it is the nation’s second-largest source of human capital. The organization could have used this money to help the nation and its economy by creating more jobs and work, as it had previously stated in a statement.
