Subrata Roy Sahara was a very popular Indian businessman. His story was much a success story, as it is of courage, dream, and hardship. He is a boy from a small town in Bihar, but rose to be the chairman of one of India's biggest business houses—Sahara India Pariwar. His group helped millions of people for decades in finance, real estate, media, hospitality, and sports.
But the ride was not easy. While he built an empire and gained the trust of people, he also had his share of legal troubles that changed the course of things to come for his organization. In this blog, we'll talk about the whole saga of Subrata Roy Sahara—his rise, his firm, the crisis he went through.
Subrata Roy Sahara was born on 10th June 1948 in a small town of Araria in the state of Bihar in India. He belonged to a normal middle-class family with not much wealth. He had a tough childhood life. But even at a very young age, he was very certain that he would do something great in his life.
He studied and then shifted to Ranchi to do post-graduate studies. He did mechanical engineering from the Government Technical Institute, Gorakhpur. Roy learned hard work and out-of-the-box thinking in those initial days. Success, he believed, did not only stem from money—it stemmed from brilliant ideas, faith, and good deeds for mankind.
He started a small enterprise in Lucknow in 1978 for ₹2,000. The enterprise was engaged with offering finance services to people who were not catered by big banks. His venture was called Sahara Finance. His dream was to enter villages and small towns, where very few other companies ventured.
And from modest beginnings, Subrata Roy Sahara embarked on developing the monolith Sahara India Pariwar. His enterprise expanded extremely fast during the 1980s and 1990s. He focused on financial services, enabling simple Indians to invest and save in small schemes. This benefited predominantly rural Indians who lacked the facility of banks.
Sahara Group diversified rapidly into various sectors:
Property and housing: Sahara built apartments and houses for middle-class families in every Indian city.
Finance: Sahara offered fixed deposits and saving schemes to millions of individuals.
Media: Sahara started television channels and newspapers like Sahara Samay, which turned out to be a success in Hindi-speaking areas.
Airlines: Sahara launched Air Sahara, an air travel company that provided cheap flying before eventually getting purchased by Jet Airways.
Sports: Sahara sponsored the Indian cricket team for many years and even bought a Formula One team (Sahara Force India).
Retail and hospitality: The group also entered retail and opened one of Mumbai’s top luxury hotels—Sahara Star.
Sahara India grew to employ more than 1 million people, directly and indirectly. For a time, it was even called the second-largest employer in India, after Indian Railways.
Subrata Roy had been addressed as "Saharashri", a name of love and respect. He was a confident one, inspiring as a mentor, and an inspirational personality.
One of the most important reasons Subrata Roy Sahara was so successful was due to the trust of the public. While other financial institutions were wooing high-profile clients in urban areas, Sahara formed friendships with common folk. His employees went door-to-door, village after village, telling people of savings and security.
Millions of Indians were customers of Sahara. They invested in Sahara schemes due to their belief in Roy. Agents of Sahara were treated like members of the family in the majority of homes. The model was successful in rural India, where people were not shielded by conventional banking.
By the 2000s, Sahara India had gained a solid reputation. Its "Sahara - Parivar (Family)" slogan was not a gimmick. It was a sign of how the company operated. Even the staff felt like family, and not just a firm. Sahara founded schools, hospitals, and supported social causes. It donated to disaster relief, sports scholarships, and education for poor kids.
Roy's influence spread beyond the corporate world to society. He was befriending politicians, celebrities, and sportsmen. Various celebrities used to come to Sahara headquarters in Lucknow.
Despite his phenomenal success, Subrata Roy Sahara's business conglomerate reached a turning point. It was in 2010 that the Securities and Exchange Board of India (SEBI) began to raise an eyebrow about Sahara's fund-raising kitty. SEBI alleged that Sahara had collected over ₹25,000 crore (nearly $3 billion) from investors for two companies: Sahara India Real Estate Corporation and Sahara Housing Investment Corporation.
SEBI complaints were that the money-raising process was not in consonance with the tenets of law. Sahara responded that it did everything required and had repaid almost the entire amount. However, SEBI sought proof and requested the entire amount to be deposited into a government account.
After long court proceedings, the Supreme Court of India ordered Sahara to refund the money. After Sahara missed deadlines, the court had Subrata Roy Sahara arrested in 2014. He stayed at Tihar Jail, which is Asia's largest prison, for more than 2 years.
This was a huge shock for all of them. Those who had idolized him were skeptical towards him now. His arrest tarnished the image of the Sahara Group miserably. The majority of the investors got agitated. Some asked for refunds. Business started slowing down.
Though released on bail, Roy was required to go to court again and again. The company was forced to divest assets to pay dues. Business divisions like the airline and F1 team were divested.
Sahara sold the hotel to Katara Hospitality in July 2018. In India, the group owns the "Sahara Star" hotel near Mumbai's Chhatrapati Shivaji International Airport
Aside from the legal issues, Sahara still has a loyal staff and good brand in some areas. The group also continues its philanthropic activities, mostly in Uttar Pradesh and Bihar.
Most of the investors still believe in Sahara, though some have lost faith. The fate of the group depends either on how the legal cases are resolved and how the company adapts to emerging markets
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Subrata Roy Sahara was a fine tale with both good and bad lessons. He showed that with a lot of hard work, you can rise from being poor to creating a business empire. He showed that helping common people can bring unparalleled prosperity and loyalty.
But he also showed what can happen when regulatory and legal issues aren't dealt with cautiously. Even the biggest companies can put themselves in trouble if rules are broken or ignored.
Some key lessons:
Think Big: Roy started small but thought big. Imagination set him apart.
Serve the People: He served people in small towns and villages, and this made little impact on few companies.
Establish Trust: Roy was able to build close relationships that served to promote his business.
Obey the Law: Adherence to laws is paramount regardless of size.
Persevere in Adversity: Despite all that has transpired, he stands firm in the fight for the future of his group.
The future of Sahara Group and the conglomerate hangs in the balance. There are legal cases pending. SEBI is continuing with refunds. The Supreme Court is keeping the proceedings under close watch. But the group says it has repaid most of the investor money.
If Sahara can solve its legal problems, it may be able to expand again. It has experience, loyal clientele, and a clean reputation. The group has also stated that it is planning new businesses, especially in technology and online finance.
Even though Sahara will not be the behemoth it used to be, no one would ever forget the name Subrata Roy Sahara in Indian corporate history.
There isn't any official prominent name of a well-known CEO announced by Sahara India Pariwar
Subrata Roy, founder of Sahara India Pariwar, passed away on November 14, 2023, at the age of 75, after a long struggle with health issues such as cancer, high blood pressure, and diabetes.
Precise figures now are hard to come by. Sahara India Pariwar was at its peak worth billions of dollars. However, financial difficulties and legal problems and monetary penalties besmirched its fortune. Assets are less now because of refunds and ongoing court directives.
Yes, Sahara Group continues to be active in some fields like housing, media, and social services. It has lost effectiveness, though, and is run under tight legal regulation.
Sahara sold the hotel to Katara Hospitality in July 2018. In India, the group owns the "Sahara Star" hotel near Mumbai's Chhatrapati Shivaji International Airport
The Sahara family is still there in India—mainly Delhi and Lucknow.
