Subrata Roy, the founder of Sahara Group, passed away on Tuesday at the age of 75 in Mumbai. Known for his rags-to-riches journey, Roy built a multibillion-dollar conglomerate spanning various industries such as finance, housing, media, manufacturing, aviation, and hospitality. Despite his remarkable success, his life was marred by controversy and legal troubles, with his company being accused of defrauding investors of billions of dollars. However, Roy’s story continues to captivate the Indian corporate world, leaving behind a complex and intriguing legacy.
Born in 1948 into a privileged land-owning family in Bihar, Roy’s life took a drastic turn after his father’s demise. To provide for his family, a young Roy resorted to selling salted snacks on a scooter. Yet, his entrepreneurial spirit soon led him to take over Sahara, a struggling finance company, when he was in his 20s. Roy transformed the company’s financial model in 1978, propelling Sahara towards unprecedented success. The once modest firm, with a capital of just 2,000 rupees ($24), flourished under Roy’s leadership, becoming one of India’s largest business conglomerates in the 1990s. It employed over a million workers in the private sector and gained significant recognition by sponsoring the Indian cricket team and having stakes in prestigious ventures such as Force India, a Formula One racing team.
Critics often compared Roy’s management style to that of a cult, as he referred to himself as the “chief managing worker” and the guardian of the “Sahara parivar (family)”. His extravagant lifestyle further reinforced this impression. Roy owned a fleet of private jets, helicopters, luxury cars, and lavish properties. His opulent mansions were modeled after iconic residences like the White House and Buckingham Palace. In addition to his remarkable wealth, Roy also nurtured relationships with influential film stars and politicians. The grand wedding of his two sons in 2004 was attended by a whopping 10,000 guests, including business magnates, Bollywood idols, and cricket celebrities. The ceremony even garnered Prime Minister Atal Behari Vajpayee’s presence.
However, Roy’s empire faced severe legal challenges starting in the early 2010s. Sahara came under scrutiny by India’s market watchdog, the Securities and Exchange Board of India (Sebi), for failing to repay investors’ money. It was revealed that two Sahara firms had raised 240 billion rupees ($3.9 billion) through illegal bonds. These funds were sourced from approximately 22 million mostly rural investors. Despite a court order, Sahara failed to return the money, leading to a legal battle with Sebi. In 2014, Roy’s arrest ensued for non-compliance with court proceedings, resulting in a little over two years of imprisonment. He was eventually released on bail in 2016 and mostly stayed out of the public eye.
In 2020, Roy resurfaced in the media when he was featured in a Netflix docuseries titled Bad Boy Billionaires: India. The series examined the stories of Indian business magnates who faced legal troubles after achieving immense success. Roy’s inclusion further added to the enigma surrounding his life and reinforced his position as an intriguing figure in India’s business landscape.
The passing of Subrata Roy marks the end of an era for India’s corporate world. His journey from humble beginnings to building a vast empire will continue to inspire future generations of entrepreneurs. However, it serves as a cautionary tale as well. Roy’s downfall highlights the importance of ethical business practices, financial transparency, and accountability. The controversies surrounding his company reiterate the significance of adhering to regulatory frameworks and protecting the interests of investors.
As Subrata Roy’s legacy unfolds, it is crucial to recognize the complexities of his life and the lessons it imparts to the world of finance. While his rise to prominence reflects the spirit of enterprise and resilience, the legal challenges and controversies surrounding his empire remind us of the need for maintaining strong ethical standards in the pursuit of success. Subrata Roy’s story will forever remain a chapter in Indian corporate history, sparking discussions and debates on the balance between ambition and integrity.
