Sahara Group chief Subrata Roy dies of cardiorespiratory arrest

Lucknow/Mumbai: Sahara Group chief Subrata Roy passed away on Tuesday due to a cardiorespiratory arrest after a prolonged illness, a company statement said. He was 75.

Having created a huge business empire across retail, real estate and financial services sectors, Roy was at the centre of a huge controversy and faced multiple regulatory and legal battles in connection with his group firms that were accused of circumventing regulations to create multi-level marketing schemes.

According to the company statement, he was admitted to the Kokilaben Dhirubhai Ambani Hospital & Medical Research Institute in Mumbai on Sunday after his health deteriorated.

He passed away at the hospital at 10.30 pm on Tuesday due to a cardiorespiratory arrest following an extended battle with complications arising from metastatic malignancy, hypertension and diabetes, it added.

"It is with profound sadness that Sahara India Pariwar informs the demise of our Hon'ble 'Saharasri' Subrata Roy Sahara, Managing Worker and Chairman, Sahara India Pariwar," the group said in the statement.

Calling him an inspirational leader and visionary, the statement said, "His loss will be deeply felt by the entire Sahara India Pariwar. Saharasri ji was a guiding force, a mentor, and a source of inspiration for all who had the privilege to work alongside him." Sahara India Pariwar is committed to upholding Roy's legacy and will continue to honour his vision in driving the organisation, it added.

Among various cases faced by the group, capital markets regulator Sebi had ordered Sahara India Real Estate Corporation Ltd (SIRECL) and Sahara Housing Investment Corporation Ltd (SHICL) in 2011 to refund the money raised from investors through certain bonds known as Optionally Fully Convertible Bonds (OFCDs) after the regulator ruled that the funds were raised by the two firms in violation of its rules and regulations.

After a long process of appeals and cross-appeals, the Supreme Court on August 31, 2012 upheld Sebi's directions asking the two firms to refund the money collected from investors with 15 per cent interest.

Sahara was eventually asked to deposit an estimated Rs 24,000 crore with Sebi for further refund to investors, though the group always maintained it amounted to "double payment" as it had already refunded more than 95 per cent of investors directly.

The Sahara Group had earlier said it has always built its businesses by productively channelizing human capital spread across India and giving employment and work at people's doorstep.

"In this way, Sahara is providing bread and butter to more than 14 lakh people in their own villages and towns. It is the country's second-largest human capital after Indian Railways. This amount could have been used by the organisation to generate more employment and work and helped the country and therefore its economy," it had said in an earlier statement.

Calling him a thief, a man from Gwalior once threw ink on the face of Roy when the Sahara Group chief was brought to the Supreme Court amidst chaotic scenes wearing his trade mark waistcoat and tie.

The order to arrest Roy in 2014 was issued after his failure to appear before the apex court in the contempt case arising out of non-refund of Rs 20,000 crore to investors by two of his companies.

He was later granted bail but troubles continued for his various businesses.