The Sahara Shri Saga – All You Need To Know!

(image source: www.firstpost.com)

Many fine mornings, we wake up and open our newspapers to be greeted by full-length ads from the Sahara Group, with an emotional letter or statement from Mr. Subrata Roy. 28^th of February, 2014 was one such morning (or day, for the late risers). Here’s all you need to know about ‘The Sahara Shri Saga’:

Who is Subrata Roy?

An Indian businessman, Subrata Roy likes the world to call him ‘Sahara Shri’. He is the founder and chairman of the ‘Sahara India Pariwar’, which is involved in businesses spanning across many sectors like real estate, media, hospitality, entertainment, healthcare and tourism. To jiggle your memory a little, he is the same person who had threatened to withdraw sponsorship for the Indian Cricket Team after a disagreement with BCCI (Board of Control for Cricket in India) Chief N. Sreenivasan over the Pune Warriors India franchisee owned by him in the IPL (Indian Premier League). He prefers the title of ‘Chief Managing Worker’ to Chairman or Managing Director.

Why is he in the news?

He is making the headlines because the Supreme Court of India, on 26^th February, 2014, issued a non-bailable warrant against Mr. Roy. The reason was this.  Mr. Roy was supposed to appear before the Supreme Court on the above date in relation to a case but he did not do so, citing the ill-health of his 92 year old mother in Lucknow.

On 27^th February, however, when the UP (Uttar Pradesh) police went to the famous ‘Sahara Saher’ (Sahara City) to arrest him, he could not be found there. The media was filled with reports that he was trying to avoid and run away from the law. But Mr. Roy, in his trademark style, issued full page ads in newspapers all across the country, explaining that he could not be found in his home because he had gone out to Lucknow to meet a few doctors and that he was not absconding.

The next thing we know, on the 28^th of February, he says he surrendered. The police say there is no possibility of surrendering in this case and he was arrested. The following events followed:

1.       After his arrest, he was with the police at “Sahara Saher” for several hours.

2.       At around 5 pm, news came in that he would be produced before the Chief Judicial Magistrate (CJM) and there would be a special sitting as normally it was a holiday on account of Shivratri.

3.       According to media reports, when he was taken to the court from “his” city, it was in an Audi, flanked by many other high-end cars along with the police cars.

4.       In the courtroom, the media was asked to leave the place.

5.       In his order, the CJM had ordered for Mr. Roy to be kept in police custody and to be produced in front of the Supreme Court on the 4^th of March, 2014. The police decided to keep him in custody at a forest guest house in the state.

What is the case in which he was asked to appear before the Court?

Mr. Roy was asked to be personally present in the Court on 26^th February because two Sahara group companies – Sahara India Real Estate Corporation Limited (SIRECL) and Sahara Housing Investment Corporation Limited - have to return about 19000 crores of money to investors. The total amount was 24000 crore. The group has already returned 5120 crores. The group contends that the SEBI order directing them to return the money was bad. The Supreme Court, then, asked the directors of both the companies along with Mr. Roy, to appear personally before the Court.