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  • Dec 19, 2014
  • Updated: 10:48pm
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INDIA

Sahara employees help to raise 300b rupee bail for Subrata Roy

PUBLISHED : Monday, 31 March, 2014, 5:31am
UPDATED : Monday, 31 March, 2014, 5:31am
 

Sahara group employees are helping to raise 300 billion rupees (HK$12.95 billion) in bail money to free the financial giant's chief Subrata Roy from prison, company officials say.

Roy, 65, was sent to New Delhi's Tihar jail on March 4 over a case involving the repayment of billions of dollars collected in an illegal investment scheme.

Earlier last week, the Supreme Court ordered Roy, who has a mansion modelled on the US White House, to post the bail.

In a statement, Sahara said the move to raise the money was "an emotional initiative".

But media reported that Sahara chiefs had sent e-mails calling for contributions, a claim denied by an executive.

Sahara raised 200 billion rupees from millions of small savers through an illegal bond scheme.

Regulators ordered the group to pay back the money with 15 per cent interest, even though the Supreme Court said there were "serious doubts about the existence" of the investors.

That fuelled long-running allegations the company may have been engaged in money-laundering for rich politicians.

Sahara insists the company has only been helping poor, mainly rural investors who are hard to locate.

The Supreme Court sent Roy to jail, saying it was "not happy" with Sahara's plans and demanded a "concrete proposal".

The bail money is being raised by a new Sahara unit. Donors will get shares in return.

Roy's entertainment-to-financial services conglomerate, based in Lucknow, claims to employ 1.2 million people, second only to India's railway.

Sahara's website says its assets total US$11 billion but Roy said his personal holdings were worth just US$1 million.

Regulators are tightening supervision of India's wide range of largely unregulated financing activities outside the traditional banking system.

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14

This article is now closed to comments

sneha
There is no justice for anyone in this country which is going to the dogs. Someone like Subrata roy and sahara, which has done so much for the country for decades, have been hounded by the govt and its lackeys. Bloody shame!!!
sahil.peerzada.98
Hell!
Here come a new political group "SC" ....
SC seeks Rs 10k cr from shahra group for a bail out of subrata roy...
This is ****
sahil.peerzada.98
This shows the honesty of Subrata Roy that how their employees are praying & serving for him in order to get rid out him from this harsh situation ...
sakshi24
This is an emotional initiative by Sahara employees. Nothing bad in this. Sahara has done so much for them why they cannot help them in their tough times.
ramprasad.sahu.562
Sahara had give jobs to 12 lacs of people since it was found. It is much more than any of the organization. So if they are helping their leader in his bad time, then whats wrong with this?
Rajesh Sharma
Sahara asking for help from its employees is nothing bad, and its not like other companies have never turned to its employees for help. So why is this matter been blown out of proportion?
supiriya.gupta.18
I am confident that in the end everything will come out in the open and Subrata roy will come out clean and head held high. But who will pay fir the trauma that he has been going through for the past one month? Locked like a petty criminal after giving so much to the country
Aastha Sharma
It shows the honesty of Subrata Roy. If he was not honest then why his emplyees are doing efforts to get him out. So he should be get released soon.
Aastha Sharma
You are right. Subrata Roy has support of such big number of people. While some other businessmen are living free while all their employees always ask them for payment. Is Sebi loyal to their work?
isha.shree.3762
Power corrupts and too much power corrupts absolutely. That is the case with sebi. They are going after anyone they wish to. This time Subrata roy is the victim.

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