The rise and fall of Sahara's Subrata Roy: A tale of triumphs and legal battles

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The story of Subrata Roy reads like an urban legend, starting with a borrowed capital of just Rs 2,000 in 1978 and growing into a corpus of tens of thousands of crores over three decades, with contributions as low as Rs 10-20 from investors. However, this success crumbled brick by brick.

Roy, who passed away in Mumbai on Tuesday at the age of 75, continued to navigate the complexities even while battling in courts and before regulators.

Facing questions about payments and repayments to investors, Roy famously sent 128 trucks with over 31,000 cartons of documents to capital market regulator Sebi's headquarters in Mumbai. The regulator, flummoxed by the task, had to utilize a huge warehouse with an 'automated robotic system' for handling documents.

The Sebi saga began with just two complaints, but it became the biggest challenge for Roy's business empire. Before its decline, Sahara's portfolio included financial services, real estate, aviation, marquee hotels in London and New York, an IPL cricket team, a Formula One racing team, and sponsorships for cricket and hockey teams.

One of the ambitious projects was Aamby Valley, a hillside township in Maharashtra, which was supposed to have villas for prominent figures in cricket, films, and politics. Despite allegations that the funds collected belonged to politicians, cricketers, and Bollywood stars, no proof was presented.

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The Sahara case began with Sebi's investigation into the proposed IPO of Sahara Prime City Limited in 2009. The regulator received a complaint about non-disclosure of convertible bonds issued by Sahara India Real Estate Corporation Limited. The investigation led to an enduring legal battle.

Sahara continued to grow even as the legal battles unfolded. When the case reached the Allahabad High Court, the two Sahara firms had collected about Rs 2,000 crore. By the time it reached the Securities Appellate Tribunal, Sahara Real Estate had collected Rs 17,000 crore, and Sahara Housing had collected about Rs 6,500 crore.

Roy, known as 'Saharasri,' used unconventional designations like 'Managing Worker' and 'Chief Guardian.' Despite Sebi managing to refund only about Rs 138 crore, the corpus in the Sahara account maintained by the regulator exceeds Rs 25,000 crore.

Roy's journey is a tale of triumphs and legal battles, leaving a complex legacy that includes both success and controversy. (With inputs from PTI)