1.

1mn employees
india's largest pvt companies
sahara founder and chairman 'saharashri subrata roy'

collective materialism - his way of working

create wealth for everyone

altruistic approach - makes people work harder, makes people more loyal

binded under the umbrella of family

trust sahara completely and totally

form of pyramid scheme - small investors but million investors (30 mn) converts
into a sizeable biz empire - value of scale

money coming in was funding the payments going out (chit fund)

hire more employees more agents and make low income group investors keep investing

invest -> returns -> reinvest and not take back the money (loop it)

now what do you do with the money -> Experience Air Sahara -> Hotels -> broad range
conglomerate

Aamby Valley -> entire city as a tribute to himself ?

sponsor Cricket team, Formula One

Surrounded by famous and the glamourous big shots

Sahara Wedding -> $ 60 mn

No ethics - he told court that his mom was not well so he didnt make himself
present in court whereas on the same day he attended friends party's as seen from
photos on newspaper

not easy to expose him -> he would flood the media newspapers with his own
advertisements

started new scheme of people having to go nearest sahara office and depositing
amount and give penalty of money forfeiting when missed payments daily -> exactly
what happened

led to decrease in no. of investors and started to face a crisis as this scheme
required continous flow of investors

problem started when he tried to take his company public -> you have to reveal a
certain things and make disclosures (B/S sheet, inc statement, cash flow etc)

SEBI -> inquiry (no transparency on investors and the rules under which they get
their money back) - need to comply with the stock market regulations

raised $3.5 bn illegally

considered himself absolutely invincible

overconfidence and going public with 2 companies -> crisis

supreme court gave the penalty of $3.6 bn -> investment + 15% interest

started new scheme where it showed that sahara gave the money back to the investors
and they then laready had shifted their money to a different account scheme

market regulator demanded proof of cash refund

he sent 127 trucks with crores of documents to sebi HQ and he knew that it would
take sebi months to scrutinise those docs

sebi verified and found that many names of investors have been made up -> money
might be coming from other sources

wanted world to beleive that he was the ultimate patriot

his arrogance didnt help him

didnt show up for hearings, did not comply with courts order -> contempt of court

owed 24 thousand cr Rs. to over 3 cr small investors -> but there was not a single
check which bounced or didnt default on a single payment to any investor

but the investors did not receieve any money since many years

He bit off much more than he could chew

integrity