Sahara Group owner Subrata Roy is no more in this world, he breathed his last at Kokilaben Hospital in Mumbai at the age of 75. There was a time when Sahara Group was one of the most powerful business houses of the country. Sahara’s business extended from real estate to media, hospitality, financial services and airlines. Not only this, Sahara also had an IPL team, but due to one mistake, Sahara’s luck changed and Subrata Roy Sahara had to spend 3 years in jail.
In fact, the fight with the Supreme Court and market regulator SEBI proved costly for Subrata Roy Sahara. Due to which he had to spend 3 years in jail. Let us explain in detail what is the whole matter…
Also read: Goodbye Subrata Roy…once used to sell snacks on a scooter, this is how he supported himself
The story started from 2010
In the year 2010, a letter exposed the whole dark story of the Kathik irregularities going on in the support of Subrata Roy. Actually, on January 4, 2010, a person named Roshan Lal sent a letter to the National Housing Bank. In which it was claimed that he lives in Indore and is a CA by profession. In this letter, he had requested NHB to investigate the bonds issued by Sahara India Real Estate Corporation and Sahara Housing Investment Corporation, two companies of Sahara Group of Lucknow. He said that a large number of people have bought bonds of Sahara Group companies but these have not been issued as per the rules.
The matter reached SEBI
National Housing Bank did not have the authority to investigate such allegations, so it forwarded this letter to the capital market regulator SEBI. A month later, SEBI also received a similar note from Professional Group for Investment Protection, an advocacy group based in Ahmedabad. On November 24, 2010, SEBI banned Sahara Group from raising money from the public in any form. Ultimately this matter reached the Supreme Court and the court ordered Sahara Group to return the investors’ money with 15 percent annual interest. This amount was Rs 24,029 crore.
The matter reached the Supreme Court
In the year 2012, the Supreme Court said in its decision that Sahara Group companies violated SEBI laws. The companies said the money was raised from millions of Indians who could not avail banking facilities. When Sahara Group companies failed to pay investors, the court sent Roy to jail. He remained in jail for about 3 years. He was out on parole from May 6, 2017, following the death of his mother. Which was later increased.
However, during this time Subrata Roy had tried his best to present his explanation. There was a time when Subrata Roy reached SEBI with 127 trucks full of files. But, in the end, the owner of Sahara had to spend 3 years in jail after fighting a long battle with the Supreme Court.
