Saturday, June 7, 2008

RBI Moves SC In Sahara Case - June 7, 2008

The Reserve Bank of India versus Sahara battle on Friday moved to the Supreme Court.

The central bank challenged a high court stay order on its decision to bar Sahara India Financial (SIFCL) from accepting deposits. RBI claims it wasn't even heard by the high court on the issue.

Sahara gets HC stay on RBI ban

Former solicitor general T R Andhayrujina pleaded for RBI and sought early hearing in the appeal. A vacation bench, headed by justice Arijit Pasayat, said it would hear the appeal on Monday, June 9. Former additional solicitor general Mukul Rohtagi appeared for SIFCL.

The stay against the RBI order came on Thursday, from the Lucknow bench of the Allahabad High Court, a day after RBI banned the para-banking company from accepting fresh deposits or renewing old ones.

SIFCL has about Rs 18,000 crore deposits, made by at least 4 crore people.

RBI has stated violations over maintenance of directed investments, payment of minimum interest rate, asset-liability management guidelines and know-your-customer (KYC) norms for its decision.

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