The Sahara Group used to be a major player in India’s business world. It was known for having a wide range of businesses, including airplanes, media, and real estate. That being said, the group’s image took a big hit when its chit fund scheme, which promised millions of low-income Indians better returns, caused a huge scandal. Many investors were left out in the cold because of the scandal, which led to a series of court and political fights that are still going on today.
How the Sahara Group rose and fell The Group of Sahara
A plan called chit funds gave millions of Indians the chance to invest small amounts of money every day in the hopes of a stable future. Small payments of 10 to 100 rupees made it possible for people with less money to use it. But when the group didn’t return the money that was spent, things got worse, and the Supreme Court told Sahara to give back Rs 24,000 crore to investors. Because of this decision and the fact that the group kept not meeting its responsibilities, Subrata Roy, who was chairman of Sahara at the time, was arrested on March 4, 2014. His jail time was the start of the group’s steady fall.
Claims and Examination
In addition to having money problems, Sahara was also accused of not following the rules set by the government. It became clearer what the scheme was all about when the National Housing Bank got a letter supposedly from Roshan Lal, a whistleblower, saying that Sahara’s real estate and housing companies were issuing bonds that did not follow the rules.
This made the Securities and Exchange Board of India (SEBI) look into it. Subrata Roy said in public that his company was getting too much attention after saying that India’s Prime Minister is not from Italy. He said that these words were the reason why the government was paying more attention to his business.
Political interference and the hopes of investors
The Reserve Bank of India (RBI) stepped in and told Sahara India Financial Corporation it couldn’t take deposits and had to return investors’ money in 2008. This made Sahara’s financial problems even worse. This happened after it was said that the UPA government had ignored the company’s plans, letting them grow and scam millions of poor investors. Nevertheless, when the Modi government came to power, things seemed to get better for the businesses.
BJP’s Promise to Give Back Every Penny Before the Jharkhand polls
the Bharatiya Janata Party (BJP) made a big promise: they would return all the money that investors in Sahara’s chit fund put in. There is now a clear way for buyers to ask for refunds within a certain amount of time. A strong stance from the BJP on this topic could be very important in the upcoming elections, and many people see it as a momentous change for the party.