What led to the arrest of Sahara Chief Subrata Roy?

One of the India’s biggest business tycoons, Subrata Roy, is the founder and chairman of Sahara India Parivar-a multi-industry company having interests in infrastructure and housing, media and entertainment, consumer goods retailing, finance, manufacturing and information technology.

Subrata Roy, is well known for his love for the sports fraternity. Sahara has have been the main sponsor of Indian cricket team for a period of 14 years. The Sahara Company have been the major promoter of sports in India. Not only cricket, it sponsors the Indian hockey team also.

Recently, he was arrested by the UP police after he failed to appear in front of the court despite a formal summon.  What transpired over the last few years that a man with such stature had to face arrest? What were the circumstances that foiled the Sahara India Parivar’s image globally. Here’s in brief, what led to arrest of Sahara head.

2009- SEBI receives reports against Sahara alleging the company for raising funds through OFCD’s (Optional Fully Convertible Debentures) by violating rules. Rule says: One has to take permission from SEBI for any issuance of securities to 50 or more investors.

2010- SEBI receives another similar complaint. SEBI seeks clarification from the Company, and later in the year passes an interim order to Sahara to refund the money to the investors. (The number of investors’ read above a crore).

2011- SEBI passes final order and Sahara challenges the decision before the Securities Appellate Tribunal. The Tribunal upholds the SEBI decision and orders Sahara to refund the ₹ 24,000 crores to its three crores investors.

2012- Sahara appeals in Supreme Court, no respite even here. Supreme Courts directs Sahara to refund money with an immediate payment of ₹ 5,120 crores.

2013- SEBI issues summons to Sahara. Supreme Court, after finding irregularities in refunding of money by Sahara, bars Subrata Roy from leaving the country.

2014- Supreme Court directs Subrata Roy to appear personally. SC issues non-bailable warrant after he fails to make appearance citing mother’s illness. Subrata Roy is later arrested by the Lucknow police and is in police custody till March 4.

Though Subrata Roy had earlier responded by saying that he already repaid ₹ 20,000 crores to it investors and the balance should be refunded by SEBI which is already deposited with it. It is to be seen that what happens on March 4, when Subrata Roy appears in front of court. Were there any irregularities in the refunding the money or it’s just that the matter is being blown out of proportion? In the meanwhile, troublesome times lie ahead of Sahara Group, as to who will head the business operations and current affairs of the group for the time being. Will it be Seemanto Roy, Subrata’s younger son or Swapna Roy, his wife?

  • india man

    See, when the whole media is with Mr. Subrata Roy, there must be something wonderful about him, otherwise, there is no need for them to support Mr. Roy.
    Besides that Kapil Dev also said that Subrata Roy is a Patriotic Man.
    a man was innocent until proven guilty so Roy should be given a chance to defend himself.

  • Yogesh

    As if Government is actually worried about
    the investors. If they are really so concerned then why haven’t they
    distributed those rupees 5000 cr. amongst the investors which Sahara has
    already forfeited?

  • mothisharma

    Non-bailable warrant has been issued so as to gain Subrata’s appearance in court and not for anything related to the matter. So Investors has nothing to do with it. One of my friends has invested with Sahara and more than him talking about his claims, I see media’s involvement in it. In case, Media has lack of ideas then I would recommend them to take ideas from Amir Khan. Hats off to him as he has come up with much better instances for upliftment of society.

  • Radha

    would like SEBi to be exposed! They have already wasted time and tax payers’
    money in investigating something that is debatable and shrouded in complexities

  • usha budhiraja

    is sad to know that the highest court in the country failed to show its
    sensitive side. Mr Roy’s failure to appear before the Supreme Court was due to
    his mother’s illness, for which even thee medical record was produced. Why then
    was this not taken into consideration? Surely, he was not absconding. He was
    merely, like any one of us, tending to his mother. It’s about time the Indian
    justice system acted in a more humane way.

  • surya singh

    Roy was out consulting doctors and meeting lawyers at the time of summons and
    complained that he “can’t handle this level of agony and humiliation”. Who
    can, let alone a man who has given so much to the society?

  • Kunal Kapur

    Sahara chief is very attached to his mother; her condition remains fragile and
    he was hoping for a Supreme Court relief. Was that too much to hope for?

  • India man

    Sahara Parivaar has been very wrongly interpreted and presented in public
    against the backdrop of the ongoing Sahara – Sebi case. The goon-like attitude
    of SEBI has left a bad taste in the mouth and even they should be held
    responsible for the witch-hunt it has initiated. So far, it’s only claims and
    counter claims and only once the allegations have been established and a ruling
    of guilt made, should the Government treat him like a criminal.

  • India man

    The common man is clearly being misguided by everything that is appearing on TV.
    It’s a manipulation to malign Sahara’s name that has been earned through
    decades of trust and sweat. Personally speaking, I am an educated man and so
    far I have got my money’s worth every time I invested in various schemes. In
    fact, to hell with monsters like SEBI who think they are the lords who can
    dictate and twist arms.

  • surya singh

    have many colleagues and friends who continue to deposit money with Sahara
    despite all the muck that SEBI is attempting to float. Just because there are
    SEBI-dictated reports in the media, they are hoping Sahara would be deserted by
    its long-term investors. Of course, there would be those who would be affected
    by all that is going around but that is only unfortunate and disgustingly, the
    Govt agency continues to do so. We are investing because we have only gained
    and never lost through alleged Ponzi schemes. I have got my promised returns so
    what do I care?

  • Gargi Batra

    is a lot of ruckus concerning the welfare and interest of the depositors by
    numerous agencies and media alike. In reality, the agenda against Sahara
    doesn’t seem to concern in any way the well being of investors. They are simply
    the purported reason. It seems the idea is to isolate Sahara and its chief,
    Subroto Roy and ultimately force it to wind up. Such dictatorial programme will
    come back to haunt SEBI and others for sure.

  • harsh

    This is unfair justice. All the facts are produced by Sahara through their ads.
    I think injustice has been done.

  • Joyjeet Sarkar

    when he helped the people of Uttarakhand during the calamity last year? Yeah
    you people who got paid by politicians and business competitors could learn
    something from that, instead of making bullshit statements.

  • saurabh


    After a long long wait, Mr. Sidharth
    Shekhar yells the sole story of Sahara-Sebi in the panel of discussion, http://www.bitly.com/1mCVJgB

  • s k gupta

    sahara statment is true. but sebi statment is worng

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