Even as asset seizure and arrest hang over his head, Sahara India chief Subrata Roy is busy thinking up new business plans, which he hopes will get finalised by the month-end. In an interview to Business Line , Roy asserts his innocence and says he will not tolerate anything that damages the goodwill that he has earned in the last 34 years.
Excerpts (translated from Hindi) from the interview:
You have declared that your personal assets are worth just around Rs 3 crore. How do you justify this?
Since 1978, I have been leading my life on a good salary. Also, let me tell you that my company has never ever declared a dividend, nor has it shared a rupee of its profits. All the company directors, partners and shareholders are in the rank of workers. All of them have taken oath that neither they nor any member of their family will have a share in profit. They will also not share any asset of the company. Today, around 10 lakh people work with us. We do not have any industrial problem. We do not have a union. You will be surprised to know that no one takes overtime here and yet works with dedication. Basically, this group is a family, a co-operative in true sense. That is why my personal assets are around Rs 3 crore only.
Your reaction to the actions initiated by Securities and Exchange Board of India…
We feel the real reason behind these actions is the chain reaction of various developments that took place in 2005, 2008 and so on. However, let’s keep them aside. I have realised that people — regulators and those at high places — cannot tolerate somebody standing up to them. They prefer people who simply bow their heads. If doing this is not in my blood, then what can I do? There is vengeance against us.
There are allegations that you refused to give information to SEBI…
When we planned to list, we submitted a draft red herring prospectus to SEBI. The market regulator sought details about our residuary non-banking company activities from the Reserve Bank of India, while it asked us to give details about Optionally Fully Convertible Debentures. We requested them to access the information from our regulator, RBI. I can tell you that I met the then Chairman (who has passed away) of the Securities Appellate Tribunal personally, and he had said that SEBI’s approach was not correct. I also met Bhave ( former SEBI Chairman)) and requested him not drag us into their tussle with RBI. I told him that we could not accept two regulators. If you accept two regulators, then you will have to follow two instructions, at times even contradictory ones.
What about allegations of fictitious investors in schemes offered by some of your group companies?
Two months ago, I sent a letter challenging the authorities to find, if they can, one fictitious investor. When I say please check, investigate and verify, how can they go ahead without doing so? We are in operation, we are working, and we know the truth. You may not accept the truth that we place before you, but without checking, you cannot declare that it is wrong. What is the justification for making such a big issue out of it? This is very unfortunate, very sad.
What is the future for Sahara?
The future for Sahara is always bright. The truth may face some setback, but it cannot be defeated.