The rise and fall of the Sahara Group is a tale of ambition, success, and subsequent challenges that led to its decline. Founded in 1978 by Subrata Roy, the Indian conglomerate initially gained prominence in the financial services sector, expanding into real estate, hospitality, and media over the years. Subra Roy pass away at the age of 75.
During its ascendancy, Sahara Group became one of India’s largest and most diversified business entities. The company’s flagship venture, Sahara India Pariwar, achieved significant success with its financial services arm, attracting millions of investors through innovative savings schemes.
It is recently being reported that the government has been checking the legality of moving the unclaimed money from the Sahara-Sebi Refund Account to the Consolidated Fund of India. This news came after the death of its founder Subrata Roy. He was admitted at the Kokilaben Dhirubhai Ambani Hospital & Medical Research Institute in Mumbai on Sunday after his health deteriorated. He died on Tuesday, November 14 after his prolong illness with cardiorespiratory.
However, the group’s fortunes took a downturn in the early 2010s. The Securities and Exchange Board of India (SEBI) raised concerns about the legality of Sahara’s financial instruments, leading to a prolonged legal battle. In 2012, the Supreme Court of India ordered Sahara to refund billions of dollars to investors, citing regulatory violations.
This marked the beginning of Sahara Group’s fall from grace. Subrata Roy faced legal troubles, including contempt of court charges, and was eventually arrested in 2014. The group struggled to meet the massive repayment obligations, leading to the liquidation of some of its assets.
The Sahara Group’s decline underscored the importance of regulatory compliance in the financial sector and raised questions about corporate governance within the conglomerate. Despite attempts to salvage the situation, the legal entanglements and financial setbacks proved insurmountable.