Sahara Journey: Country’s veteran industrialist and founder of Sahara India family Subrata Roy has passed away at the age of 75. Subrata Roy’s journey of teaching saving to daily wage workers has been full of ups and downs. Subrata Roy’s star, which left its mark on Bollywood’s Page Three from the cricket field, has been left in the lurch due to its desire for an initial public offering (IPO).
Application for IPO in 2009
Indeed, in September 2009, SEBI received an application for an initial public offer (IPO). The company that submitted the application to stock market regulator SEBI was Sahara Group’s ‘Sahara Prime City’. In the following month i.e. October 2009, two more Sahara Group companies – Sahara India Real Estate Corporation Limited and Sahara Housing Investment Corporation Limited also filed for IPO (Red Herring Prospectus) with the Registrar of Companies. Sahara Group wanted to enter the stock market through 3 IPOs simultaneously, but no one expected that this decision would spell the downfall of the group.
Journey to the Sahara
Team India on the cricket field Jersey Be it airlines flying in the sky or page three parties, the splendor of the Sahara was everywhere. Sahara achieved its position in many big sectors including real estate, media, entertainment, aviation, hotel, finance. During this time, he reached not only the world of glamor and politics but also small towns. Sahara taught people to save even those who didn’t even care. Sahara won the trust of people in a very short time due to its attractive interest rates and easy investment facility for all sections of the society. Now Sahara Group’s dream was to enter the stock market. To fulfill this dream, three Sahara companies submitted their documents for IPO to SEBI. Let us tell you that when a company is listed in the stock market, its process is to launch an IPO. Through an IPO, common people also get an opportunity to buy shares in a company. Sahara aimed to enter the market in a similar manner, but from here things went from bad to worse.
SEBI increased monitoring
In September-October 2009, Sahara companies’ documents reached SEBI. SEBI was examining these documents when the two Sahara companies came under the scanner. These complaints mentioned illegal financial transactions with investors. Following this, SEBI swung into action and a subsequent investigation found that the mechanism adopted by the Sahara group to raise money from investors required SEBI’s permission, which was not followed. When SEBI banned the IPO, it also sought a response from Sahara Group. Unsatisfied with the response, Sebi asked the two Sahara companies to return the funds raised from investors. From here the tension between Sahara and SEBI also started. The matter went to different courts but finally the Supreme Court ordered Sahara to deposit Rs 24,000 crore of investors with SEBI.
The Supreme Court gave Sahara an option to deposit this amount in three installments. However, when Sahara failed to deposit all three installments, SEBI issued orders to freeze Sahara group’s bank accounts and seize its properties. Despite repeated requests from SEBI, Sahara did not comply with the orders. Once again the matter went to the Supreme Court. This time SEBI appealed to the Supreme Court against Sahara chief Subrat Roy. Along with this, they were asked not to allow him to leave the country.
In the meantime, Sahara placed advertisements in newspapers from time to time to present its stand. Each time Sahara said it had enough funds and would return the investors’ money. Several times Sahara’s advertisements also mentioned that it could not return the money due to SEBI and court sanctions. Despite all of Sahara’s claims, investors continued to wait. However, now after a long time, the government has started the exercise of returning the money deposited in Sahara. Some people have also received money in this. Please note that the Co-operative Minister Amit Shah Launched ‘CRCS-Sahara Refund Portal’ on 18th July. You can claim your money on this portal.