Sahara Group & Scam 2010 – The Subrata Roy Saga’
The Sahara Group led by Subrata Roy was embroiled in one of the most significant financial controversies in Indian history, often referred to as “Scam 2010”. The incident began when the Securities and Exchange Board of India (SEBI) accused Sahara of raising funds from millions of investors through Optionally Fully Convertible Debentures (OFCDs), which were deemed illegal. SEBI argued that Sahara did not comply with regulatory norms and failed to provide adequate information to investors, leading to a lengthy legal battle
New Delhi, Sahara Group has expressed strong opposition to the upcoming series titled “Scam 2010 – The Subrata Roy Saga”, terming it a “disgraceful and highly reprehensible act”. The group has announced that it is considering taking legal action against the show’s makers. The series, described as “the dust-to-diamonds story of maverick businessman Subrata Roy”, is “Scam 1992: The Harshad Mehta Story” and the third chapter in filmmaker Hansal Mehta’s acclaimed series “Scam” for Sony LIV. “Scam 2003: The Telgi Story.” Mehta announced the latest installment on Thursday.
In an official statement, Sahara India said its “aggrieved members” are seeking legal advice to take appropriate action against the producers, directors and all persons involved in the production of the series.
“Scam 2010: The Subrata Roy Saga” has been launched by the makers of ‘Scam’ in order to gain cheap and massive publicity, the statement said.
“Sahara India family condemns such acts of all persons and parties involved and will resist their offensive behavior. In this regard, the aggrieved members seek advice to take appropriate legal action against the producers, directors and those involved in the making of the illegal filming,” the statement continued.
Sahara India noted that the ongoing legal dispute between SEBI and Sahara is still pending before the Supreme Court and asserted that “any attempt to influence the proceedings of the said case would attract contempt of court, as such acts amount to an offence.”
The group insisted that the Sahara India family was never involved in any chit fund activities, clarifying that the issue with SEBI was a dispute over the regulator’s jurisdiction over certain bonds issued by the group.
The series is based on the book “Sahara: The Untold Story” by Tamal Banerjee and produced by Applause Entertainment in association with Studio Next, directed by Hansal Mehta. According to the makers, “Scam 2010” will explore one of India’s most notorious financial scams.Scam 2010: The third season of Hansal Mehta’s ‘Scam’ announced, the title of the web series has also been revealed.
“In the early 2000s, Roy was caught in a whirlwind of allegations ranging from chit-fund manipulation to fake investors, which eventually led to his arrest in 2014. Around Rs 25,000 crore still lie unclaimed with government authorities, the response continued. continues to resonate today,” said a press release from the show’s creators.
Sahara India argued that under the guise of freedom of speech and expression no one “should be allowed to undermine the goodwill and reputation of a person, who is not available to defend himself”.
“The use of the word ‘scam’ in the title of the so-called web-series and associating it with Sahara appears prima facie defamatory and tends to tarnish the image and reputation of Saharashri Ji and the Sahara India family,” the statement added. .
Subrata Roy, who died in November 2023 aged 75 after a long illness, faced numerous regulatory and legal challenges over his group of firms, which were accused of violating regulations with Ponzi schemes – allegations he has consistently denied.
In 2011, SEBI ordered Sahara India Real Estate Corporation Limited and Sahara Housing Investment Corporation Limited to return funds raised from nearly 3 crore investors through optional fully convertible bonds, ruling that the funds were raised in violation of norms. The Supreme Court upheld SEBI’s order on August 31, 2012, ordering the two companies to refund the money with 15 percent interest. Sahara was eventually ordered to deposit an estimated Rs 24,000 crore with SEBI to refund investors, though the group claimed to have refunded more than 95 per cent of investors directly.
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