The Life and Times of Subrata Roy: A Journey from Rags to Riches to Jail
Introduction
Shankar’s book “Bangalir Bittyosadhana, Saharar Itikatha” (Bengali’s financial aspirations, Sahara’s history) which was published in 2003 with a photo of Subrata Roy on the cover highlighted the unworldly rise of Roy’s from a modest salted snacks seller to a billionaire media-to-realty business magnate. It showcased Bengali’s youth aspiration for wealth and success. However, the book depiction only covers a part of the story as Roy’ life path was marred with allegations of fraud, imprisonment and a plethora of issues.
The current scenario
Roy breathed his last in Mumbai and is survived by his wife, two sons, and a brother. The second part of his life was not as illustrious as his first half. Although in 2012, he was recognized as one of India’s 10 most influential businessmen by an India Today magazine, Roy’s troubles had begun towards the end of his glory years; things took a turn for the worse More when he was arrested in 2014 for failing to appear in court for a contempt case.
Roy’s troubles with SEBI
SEBI (Securities and Exchange Board of India) was struggling to disgorge the amounts collected from lakhs of gullible investors by Sahara’s ponzi schemes, accusations which the group denied. It is estimated that investors were deceived with promises of surreal returns through various dubious schemes, with allegations running into crores of rupees. Roy was released on parole in 2017, and since then, his health had been deteriorating.
Roy’s Success Story
Roy set up the Sahara Group in 1978, in his hometown Gorakhpur after graduating in engineering. His familiarity among locals helped small investors, such as rickshaw pullers, and tea stall owners, believe in assured returns in his schemes. These schemes were operated by Sahara India Financial, his flagship firm. Over three decades, Roy’s businesses flourished as millions of small investors poured money into Sahara’s schemes, often seeing the company as a patriotic business group.
Problems that emerged for Roy
In 2008, SEBI refused to approve an IPO by one of Sahara Group’s real-estate firms due to various problems. These issues were further aggravated in 2012 when SEBI accused Sahara of cheating millions of investors with ponzi schemes. Meanwhile, SEBI banned the public pooling of funds, kickstarting an era of widespread shutdowns of such businesses and ponzi schemes. The Sahara Group’s business was marred by this decision.
Roy’s Diversification of Business
With vast funds collected from the public, Roy was known for hosting lavish parties and managed to expand his empire into various sectors, such as finance, real estate, media, and hospitality. Roy was known for his camaraderie with politicians, such as Mulayam Singh Yadav and Amar Singh, movie stars, such as Amitabh Bachchan, cricketers, and high-flying entrepreneurs. During that time, Roy built the uber-luxurious Aamby Valley City in Lonavala, a hill-station in Maharashtra, and ventured into aviation and entertainment through Sahara Movie Studios, Air Sahara, Uttar Pradesh Wizards, and Filmy, among others.
Roy’s Assets
Roy’s 270-acre, gated mansion ‘Sahar Seher’ in Lucknow, is nothing short of a tourist destination. In 2004, Roy hosted the wedding of his two sons at the mansion, with a star-studded guest list. At its peak in 2004, Roy’s Sahara Group was ranked as the second-largest employer in India after Indian Railways. The group had at least 1.2 million people working as agents, selling Sahara’s investment schemes to those who did not have access or trust in the more formal banking system during the ’80s, ’90s and early 2000s.
The Rashness of Roy
In one lifetime, Roy was able to teach others about generating and squandering massive wealth and goodwill. The first part of his life was marked by unbelievable success, but as the years passed, his empire crumbled because of allegations of fraud and dubious schemes, and he was forced to go to jail. A sequel to Shankar’s 2003 book would aptly capture Roy’s life lessons for posterity to learn from.
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