Changing Fortune: Subrata Roy looks up to Parivar to support Sahara

The eternal smile on ageless face of Sahara Group’s founder & chairman Subrata Roy doesn’t say it all. In last more than two years, he had been under lot of stress and agony over his fight with the markets regulator Sebi. It definitely has affected his image, his business and his stature. But his tumultuous business, imprisonment in Tihar jail and fight with Sebi don’t seem to douse his never-say-die spirit. At 69, he still looks ready to take up new challenges in an environment which may not suit him the way it favoured when he launched Sahara Group around 40 years back. But Sahara Shree, as he is fondly called, is busy regaining confidence of Sahara workers and well-wishers before entering the 4th decade in business next year.

On his visit to Jaipur, embattled Subrata Roy looked confident of turning around the fortune of the Group which had to sell off some of its prime properties to pay up Sebi. This includes company’s  ambitious housing project – Sahara City – in Jaipur, which is bought by Mahima Group. The Supreme Court has ordered the auctioning of Rs 39.000 crore Aamby Valley City, a township developed in the outskirts of Mumbai, spread over more than 10,600 acres.

“Rakesh Kumar, a Sahara employee says: “Sahara Shree is our inspiration. He has spent over two years in jail, paid cash to the government, unlike others who ran away to London with cash from Indian banks.”

Roy assured his workers and said that the company is set to bounce back. “We are going through troubled times, testing times. But do not lose hope. We are world’s largest emotionally bound family.”

Sahara India is currently entangled in a litigation with capital markets regulator Sebi. The regulator says that two of Sahara’s companies have taken deposits without its consent. Sahara India has denied the charge, saying that it had taken approval from Registrar of Companies, which comes under the Ministry of Corporate Affairs and Sebi is not its regulator. Sahara has been forced to submit a little over Rs 14,000 crores to Sebi, which has now gone up to a little over Rs 19,000 crores.

“Today Sebi has around Rs. 19,000 crores (including interest earned) of Sahara’s money. While on the other hand, SEBI has only repaid Rs. 64 Crore to the investors, in last 60 months. Also, SEBI holds Sahara’s original documents of landed properties of Sahara worth Rs.20,000 crores,” Sahara’s agreement in Supreme Court.

However, winning back the confidence of investors will not be easy for Subrata Roy who has seen his life moving from a scooter to private jet.

“Workers of Sahara may come back to his fold. But investors will not back up Roy this time easily. With busting of many chit fund companies in the past, people have become cautious on where to park their saving,” said Rajeev Singh, an investor with Sahara India.

With renewed focus, Roy is organising Sahara Milan in 18 important cities in the country to galvanise his ranks and cadre. After Jaipur, Jodhpur would be the city in Rajasthan where Sahara Shree will go and reach out to every worker and motivate them for more meaningful engagements.