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 Reuters interviewed 11 employees independently contacted in separate
units in Delhi, Mumbai and Lucknow this week, and found workers at
what was once one of India's highest profile firms frustrated over a
lack of information about the group's future. Business has been
disrupted for a year as Sahara fights a regulator's charge that it
illegally sold bonds and did not reimburse investors.
The employees' claims could not be independently verified, although
an undated letter to staff signed by Roy and seen by Reuters asked
for patience from those who hadn't received what they were due.
"There is not much work to do and we have not received any salary
since September," said an official at Sahara's "Command Office"
headquarters in the northern Indian city of Lucknow, where founder
Roy's family lives in a gated complex.
Sahara did not respond to requests for comment on the letter to
staff, which three employees said was posted in late December after
workers questioned salary delays.
In response to queries from Reuters about unpaid wages, Sahara said
it faced a "liquidity crunch" due to conditions imposed by the court
on its use of funds and a freeze on bank accounts, creating problems
in meeting some of its financial obligations. It denies having
failed to pay some staff for four or five months, calling that
"completely untrue".
The letter to staff, posted on an employee notice board, said the
company's fortunes would change after March, when Sahara expected to
raise funds for bail.
"If you are not receiving what you are due immediately, then wait
with patience and trust," the letter said. "After 37 years of trust,
I am asking you for just four months - December, January, February,
March. Please keep your faith and love in us."
The pressure over payroll described by employees suggests the depth
of trouble at Sahara, a conglomerate whose assets stretch from
Formula One to property and TV. Chairman Subrata Roy has been held
in a Delhi jail since last March, after he failed to comply with a
court order to repay investors in a bond program that was ruled
illegal.
The bail amount reflects the cost of the program, estimated by
Indian regulators to be as much as $7 billion.
Sahara has told the court it has paid most of the outstanding dues
directly to the bondholders. India's markets regulator, which is
seeking redress for millions of investors, disputes that.
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"WORLD'S LARGEST FAMILY"
In its statement to Reuters, Sahara blamed its battle with the
regulator and said it was "releasing the salaries (from) time to
time, based on fund flow, on a continuous basis. There are delays of
a few months, but it is completely untrue that the company has not
paid to some of our staff since 4-5 months."
One senior official in Mumbai said there was little clarity on when
back wages would be paid.
"When we call up (human resources), they simply tell us they are in
the same situation," the official said.
Several workers said they were reluctant to quit because they felt
employers would be more likely to hire someone who already has a
job. Some had already found other employment.
Sahara says it employs about one million salaried and "field
workers" who collect payments. The company refers to itself as "the
world's largest family" under flamboyant founder Roy, known as
Saharasri, or "Mr Sahara".
Since Roy's imprisonment, Sahara has been trying to raise bail money
using its properties, including New York's Plaza hotel and Grosvenor
House in London.
Talks with U.S.-based Mirach Capital Group to raise $2 billion
collapsed this month after Reuters reported that a bank letter
underpinning a proposed deal was forged.
Sahara told the top court this week it was considering other
proposals to raise funds, including selling a luxury development
outside Pune, two hours from Mumbai.
It is unclear whether Sahara can stitch together another deal, and
no potential bidders have emerged since the Mirach deal collapsed.
(Additional reporting by Sharat Pradhan in LUCKNOW; Editing by Emily
Kaiser)
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