By: Pune Pulse
November 15, 2023
Pune: Sahara India Group Founder Subrata Roy passed away on Tuesday, November 14 due to cardiorespiratory arrest.
As per information, following a decline in his health, Subrata Roy was admitted to the Kokilaben Dhirubhai Ambani Hospital & Medical Research Institute in Mumbai on Sunday.
He passed away on Tuesday, November 14, at 10:30 p.m. Subrata Roy passed away after a protracted fight with complications from diabetes, hypertension, and metastatic cancer.
Sahara India Group officials said that it is with profound sadness that Sahara India Pariwar informs the demise of Subrata Roy, Managing Worker and Chairman, Sahara India Pariwar.
The company praised him as an inspirational leader and visionary.
Following the death of Sahara Group CEO Subrata Roy, undistributed funds worth over Rs 25,000 crore that were held in SEBI’s account have come back into the spotlight.
In relation to his group’s businesses, he was involved in several legal and regulatory disputes because it was alleged that they used Ponzi schemes to get around regulations—a claim that his group consistently refuted.
Two Sahara Group companies, Sahara India Real Estate Corporation Ltd (SIREL) and Sahara Housing Investment Corporation Ltd (SHICL), were ordered by capital markets regulator Sebi in 2011 to return the funds they had raised from almost 3 crore investors through bonds known as Optionally Fully Convertible Bonds (OFCDs).
The regulator issued this order after finding that the two businesses had raised money in violation of its policies.
Following a protracted series of appeals and cross-appeals, on August 31, 2012, the Supreme Court affirmed SEBI’s orders directing the two companies to return the funds they had taken in from investors plus 15% interest.
In the end, Sahara was requested to deposit an estimated Rs 24,000 crore with SEBI to continue paying back investors; however, the company has insisted that it had already paid back over 95% of investors directly.