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from India Insight:

Investors fear for their deposits after Sahara chief’s arrest

The arrest of Sahara chief Subrata Roy last week and the court case over an outlawed bond scheme are raising fears among some investors who worry they will not get their money back.

One of them is Anil. The 30-year-old travel agent put his 200,000 rupees ($3,276) in another investment scheme offered by Sahara, which bills itself as "the world’s largest family." He fears that the case could hurt his investment.

"I have told my agent to surrender my deposit [partially] ... I am worried, but my money will come back, my agent has said," Anil told India Insight, declining to give his last name. "I will hesitate a bit to invest any money now. If the court case goes on, I will redeem all my Sahara investments."

Roy, the 65-year-old head of the Sahara conglomerate which has business interests from shopping malls and life insurance to finance and real estate, was sent to Delhi’s Tihar Jail on Tuesday. Police arrested him after his company failed to comply with a Supreme Court order in 2012 to repay investors in the bond scheme, which the court has said was illegal.

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