There was a time when the Sahara Group was among India's top enterprises, with influence across various sectors like Sahara Airlines, Sahara Media and Sahara Homes. Sahara also launched a chit fund scheme that attracted millions of Indians from lower-income groups, who invested small amounts daily, ranging from Rs 10 to Rs 100, in hopes of securing better returns and a stable future.
However, when the Sahara Group refused to return the investors' money, troubles began to mount, and the Supreme Court tightened its grip. The Court ordered Sahara to repay Rs 24,000 crore to investors. Due to the group's failure to fulfill these payments, the then Sahara chief Late Subrata Roy was jailed on March 4, 2014, leading to the group's steady decline.
The scheme's fraudulent nature surfaced when a letter under the name Roshan Lal was received by the National Housing Bank, claiming that bonds issued by Sahara Real Estate Corporation and Sahara Housing Investment Corporation were not compliant with regulations. This letter was forwarded to SEBI for further investigation.
Subrata Roy publicly alleged that his company faced scrutiny because of his statement that India's Prime Minister should be Indian, not of Italian origin. He claimed that after this statement, top agencies began targeting Sahara.
The NBFC, once lauded by the UPA government, soon faced questions. In 2008, the RBI took action, banning Sahara India Financial Corporation from accepting deposits and instructing it to return investors' funds. Reports suggest the UPA government's support enabled Sahara's chit fund schemes to grow, yet this left many poor investors trapped. Following the political shift at the Centre, investors' hopes revived.
The Modi government has now announced a commitment to return every penny invested in Sahara's chit fund. A framework was developed for investors to apply for refunds within a specified timeframe. BJP has openly stated that every penny will be returned, making it a significant campaign promise in Jharkhand. This pledge is expected to provide BJP with a substantial advantage, potentially becoming a game changer in the upcoming Jharkhand elections.