Sahara India Pariwar is a large Indian conglomerate founded in 1978 by Subrata Roy Sahara. It operates across many sectors including finance, real estate, media, and retail. In 2010, the Securities and Exchange Board of India ordered Sahara to return $2.6 billion that two of its companies had collected through bond issuances, finding the bonds were illegally issued without proper regulatory approval. This led to a long legal battle that resulted in the Supreme Court ordering repayment and imprisonment of Subrata Roy. Sahara relies on millions of small depositors but has faced regular changes in regulations affecting its business models over the decades.

1. SAHARA INDIA PARIWAR

3. SAHARA INDIA PARIWAR - AN INTRODUCTION
Sahara India Pariwar started in the year 1978 in GORAKHPUR, UTTAR PRADESH.
Founded by SUBRATA ROY SAHARA.
It is an one of the largest CONGLOMERATE company with its operations in various
sectors.
The group operates 4,799 establishments under the Sahara India umbrella.
Sahara India Pariwar in often referred as the world’s largest family having 9,10,000
employees.

5. SAHARA PARIWAR
FINANCE :
Sahara India Life Insurance Company LTD (SILICL)
Sahara Asset Management Company PVT. LTD. (SAMCL)
Sahara Banking & Financial Services . (SBFS).
REAL ESTATE :
Sahara India Real Estate Company
Sahara Housing Investment Corporation.
MEDIA & ENTERTAINMENT :
CHANNELS – SAMAY, SAHARA 1 and subsidaries.

6. CONSTRUCTION:
HOTELS across INDIA, U.S.A, LONDON
SPORTS:
•In badminton, it owns the Awadhe Warriors of Lucknow, one of six teams
in the Indian Badminton League.
•In cricket, it owned the Pune Warriors India, a franchise team that played
in the Indian Premier League (IPL).
RETAIL :
Q – SHOPS (QUALITY SHOPS ) --- 315 RETAIL OUTLETS IN 10
STATES.
IT – SERVICING:
“SAHARA NEXT” Offers services in Banking, banking, finance,
media and entertainment, chemicals and CRM

7. SAHARA DOWN FALL -- A CASE STUDY
On January 4, 2010, Roshan Lal, a resident of Indore, sent a note, written
in Hindi, to the National Housing Bank, requesting it to look into
housing bonds issued by two companies of the Lucknow-headquartered
Sahara group, Sahara India Real Estate Corporation and Sahara Housing
Investment Corporation. Being a chartered accountant, Lal wrote in the
small note, he found that the bonds, bought by a large number of
investors, were not issued according to the rules. The National Housing
Bank did not have the wherewithal to investigate the allegation, so it
forwarded the letter to the Securities and Exchange Board of India, or
Sebi, the capital markets regulator. That note set in motion a chain of
events that resulted in the Supreme Court ordering the two companies on
August 31 to return the money they had raised through the bonds — Rs
24,029 crore — to the 29.6 million investors, along with interest (15 per
cent per annum).

8. TIMELINE OF SAHARA PARIWAR FROM 2008 – 2015
FROM 2008 -2009 :
APRIL 2008 -- SIRECL & SHICL started issuing OFCD’s
SEPTEMBER – OCTOBER 2009 -- SIRECL & SHICL files R.H.P with
R.O.C
DECEMBER, 2009-- First complaint has filed upon Sahara group by
INVESTOR PROTECTION GROUP for issuing bonds through Illegal
means.
SIRECL – SAHARA INDIA REAL ESTATE CORPORATION
SHICL -- SAHARA HOUSING INVESTMENT CORPORATION
OFCD -- OPTIONALLY FULLY CONVERTIBLE DEBENTURES
R.H.P -- RED HERRING PROSPECTUS
R.O.C -- REGISTRAR OF COMPANIES.

9. FROM 2010-2011 :
JAN 2010 – Second complaint made by MR.ROSHAN LAL, a
chartered Account to NATIONAL HOUSING BANK.
N.H.B forwarded it to S.E.B.I to take an necessary action.
 NOV- 2010 – S.E.B.I passed an interim order against two firms i.e..,
SIRECL & SHICL to refund the entire amount to public.
JUNE 2011 – S.E.B.I passed an Final order to SAHARA GROUP
SAHARA appealed at SECURITY APPEAL TRIBUNAL.
 OCT 2011 -- S.A.T asks the SAHARA to refund the amount

10. FROM 2012-2013 :
Aug 2012: SAHARA moves to Supreme court and Supreme
court has ordered to refund.
Dec 2012: Supreme court asked to refund the money within
3months and in 3 installments and immediately SAHARA should
pay Rs.5120 cr .
Feb 2013: SEBI pass an order to SAHARA to attach bank
account and properties if SAHARA failed to pay the above
installments.
Apr 2013: Subrata Roy appears before court.
July 2013- Nov 2013: It barred Subrata Roy from leaving the
country.

11. FROM 2014-15 :
Feb 20,2014: Court asks to appeal personally
Feb ,26-28,2014:Subrata Roy arrested in Lucknow and sent to
police custody till march 4,2014.
Dec,2014: Court allows Subrata Roy, SAHARA to sell four
domestic land parcel in Chomma, Jodhpur, Vasai & Pune.
Jan-2015: Court allows to take a loan of $1.05 bn from U.S based
Mirach capital group.
Feb-2015: Deal between Mirach & SAHARA had flopped due to
a forged letter from Bank of America .
Supreme court suggested to sell overseas hotels.
Mar 4: Roy & two directors complete a year in Tihar jail.

12. CASE HIGHLIGHTS
SEBI STAND:
 SEBI issued a show cause notice to SAHARA, alleging that
instances of OFCD was public issue as it involved more than 50
persons and , therefore , securities were liable to be listed on a
recognized stock exchange under Sec. 73 of the Companies Act,
1956.
It is also required to comply with various clauses of DIP
guidelines and violated regulations 4(2), 5(1), 6, 7, 16(1), 20(1), 25,
26, 36, 37, 46 and 57, of Securities Exchange Board of India ( Issue
of Capital and Disclosure requirements) Regulations, 2009( ICDR
2009)
U.K.SINHA
 Issued notice to SAHARA – SAHARA
denied it because SEBI has no “locus
standi” to call for such information.

13. CASE HIGHLIGHTS
SAHARA STAND:
OFCD’s are hybrid securities and not defined in SEBI ACT or
Securities Control Regulation Act -1956
Issuance of Hybrid securities in terms of sec-60B (Information
memorandum) , SEBI ACT.
Funds are raised by private placements.
Red Herring Prospectus was registered with ROC – Kanpur.

14. Subrata Roy entrepreneurial journey
Subrata Roy started out in 1978 with Rs.2000 in capital, a
Lambretta scooter, a table, two chairs, a clerk and an errand boy,
serving 42 customers ,with a scheme to raise funds from the public,
which got banned by 1979/80 and he had to make immediate
repayment.
He carried things over to a partnership firm. "But the Banking
Amendment Act of 1982 banned it" from raising public money.
Then he started a housing finance company, which had no ceiling
on the money raised.” Subrata Roy jumped into it. But before two
years were out, a ceiling was imposed...
Then Subrata Roy got into a mutual benefit company. In another
1.5 to two years it was banned."

15. Cont…
Then came the longest trouble-free period of his career, when he
ran a residual non-bank finance company, which functioned
smoothly for nearly two decades - it was banned by the regulators ”
 Then the two Sahara companies floated the OFCDs, SEBI
currently targets, which have been told to stop and repay.

16. Company Philosophy “collective materialism ”one “that
advocates collective growth for collective sharing and caring.”
Sahara’s clients are small shopkeepers and daily wage earners,
who deposit Rs.10 to Rs. 100 everyday.
The agent, typically a relative, friend or friendly neighbour, is the
key to deposit mobilization. Many agents begin their careers by
enlisting their family, immediate and extended. They work on
commission and, therefore, have no hesitation in going to small
shopkeepers for their little deposits every day.

17. WHY PEOPLE CHOOSE SAHARA? or STRATEGIES
ADOPTED BY SAHARA:
 "Hum to roz kuan khod kar paani peete hain (we have to earn
our keep every day)“
 "The interest rate is not very high, but money goes out in a
trickle and comes back in bulk,“
"Sahara is a low-risk investment,“ and people believe that
"My money with Sahara is secure."

18. For Example:
1.Awdhesh, who owns and runs Unique Cycle Repair, has two
schemes with Sahara. The first requires him to deposit Rs 15 every
day and the second Rs 10.
2.Ramdin is an owner of a barber shop. He had his first brush with
Sahara two decades ago with a scheme under which he deposited
Rs 5 a day. It matured and he opened another, and another. Now he
has a Rs 10-a-day scheme. The receipt for his deposits comes every
15 days.

19. FUTURE PREDICTIONS:
Subrata Roy follows a scheme “to raise funds from the
public “ from starting from his entrepreneurial journey.
But it is legally not a right thing, so at the beginning of his
career( i.e. from 1978 to still today) the regulators like RBI,SEBI
cautioned him.
Because of Mr. Subrata Roy actions the money market
regulation becomes a tough challenge to RBI.
RBI duty is to safeguard the public money and control the
money market in India.

20. Our suggestions:
Subrata Roy should clear all OFCD’s as per Supreme court
orders. Because it is not an impossible task as SAHARA’s
concerned.
Today SAHARA is the 2nd largest Employer in India and a
billion dollar company, SAHARA build up its base on peoples
faith. So it is the responsibility of SAHARA to regain its faith in
the public.
SAHARA should follow the legislations of the Indian Law
without fail, if it want to sustain in the long-run.

21. THANK YOU