The Sahara investment group is one of the most well-known yet controversial investment companies in India. With business interests spanning across finance, infrastructure, housing, media and entertainment, it is considered a conglomerate operating in various sectors. However, over the years, the company has been embroiled in numerous legal cases and controversies related to regulatory violations. This article aims to provide an overview of Sahara investment group, its key businesses, the legal issues it has faced, and the current status of its operations.
Background and Major Businesses of Sahara investment group
The Sahara investment group was founded in 1978 by Subrata Roy in Gorakhpur, Uttar Pradesh. Over the decades, it diversified into several businesses including finance, infrastructure, real estate, media, healthcare, education and hospitality. Some of its major business interests are:
– Sahara India Pariwar – The flagship company of the group which is into housing finance and developments. It has projects across over 700 cities in India.
– Sahara Life Insurance – One of the oldest private life insurance companies in India established in 1995.
– Sahara Mutual Fund (later renamed Sahara India Mutual Fund)
– Sahara Airlines (later renamed Jetlite and closed operations in 2009)
– Sahara India Mass Communication – Media wing involved in news, entertainment and digital businesses like Sahara Samay news channel.
– Hotels and resorts – Owns and operates several hotels and resorts under the Sahara Hospitality brand.
The company claims to have provided employment opportunities to over 1.6 million Indians.
Legal Controversies and Disputes Faced by the investment company
Despite finding success in many businesses, the investment company has been embroiled in major legal disputes over the past decade:
– In 2008, The company was barred by RBI from accepting public deposits due to regulatory violations.
– In 2011, a landmark case was filed by SEBI ordering refund of over Rs 24,000 crores raised through optionally fully convertible debentures (OFCDs) by two group companies. It was deemed violation of public issue norms.
– In 2014, Subrata Roy was arrested over failure to refund investors’ money despite Supreme Court order. He was later released on parole in 2016 after depositing over Rs 7000 crores.
– In 2015, SEBI ordered freezing of bank accounts and attachment of properties over failure to refund money raised from OFCDs.
– In 2017, the Supreme Court ordered auction of group’s prized Aamby Valley township project in Pune over non-payment of dues.
Current Status and Future Outlook
Despite the controversies, Sahara India Pariwar remains one of the largest conglomerates in India with presence across businesses. However, many group companies have faced uncertainty over the legal disputes.
Currently, the investment company is aiming to raise funds to pay off investors to free itself from regulatory troubles. It has been looking at various options including selling or leasing some prized assets like the three domestic hotels it owns.
The promoter Subrata Roy has expressed his intent to restart business activities once dues are cleared. However, the beleaguered company faces significant challenges to regain investor trust and re-establish itself considering its history of legal issues. The outcome of Sahara’s ongoing legal battles and ability to raise funds will determine its future prospects.
To summarize, the Sahara investment group is a leading Indian conglomerate with diversified business interests that has faced major controversies due to regulatory violations over raising funds from the public. Its future remains uncertain due to long-running legal disputes and efforts to pay off dues.