Subrata Roy is gone, but what happens to millions of depositors?

Updated On: 16 November, 2023 07:09 AM IST | Lucknow | Sharat Pradhan

With death of chit-fund mogul, even the most die-hard optimist among his depositors may have to give up hope of ever seeing their money again

Subrata Roy exchanges pleasantries with Sachin Tendulkar at Wankhede Stadium on October 9, 2002. Pic/Atul Kamble

Sharat Pradhan Sahara India founder Subrata Roy succumbed to his multiple illnesses at a Mumbai hospital, leaving in the lurch numerous depositors in his multi-billion financial empire. As per the company’s own claims, Sahara India conglomerate of chit-fund firms has as many as 9 crore depositors, who gave it the profile of the country’s biggest Non-Banking Finance Company (NBFC) with an unparalleled worth of R2,59,000 crore. By showing all its village-level collection agents as “employees”, the company had also proclaimed itself at the biggest employer after the Indian Railways.

Poorest of the poor

A bulk of these depositors happened to come from the lowest socio-economic strata, largely dependent on daily frugal earnings, part of which they happily shelled out to Sahara in the hope of making a fortune that the company would systematically project under its various chit-fund schemes. The company proudly claimed that it brought banking to the doorstep of those at the lowest economic rung who had no access to formal banking.

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