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Supreme Court orders Sahara hearing with RBI
June, 09th 2008

India's Supreme Court on Monday asked Sahara India Financial Corp, which was barred by the Reserve Bank of India last week from accepting fresh deposits from the public, to appear before the central bank on June 12.

The Reserve Bank of India on Wednesday barred the finance company saying it had flouted rules on maintaining investments and interest payments.

Sahara moved the Allahabad High Court in Uttar Pradesh and secured a stay against the central bank's order. The Reserve Bank of India then went to the Supreme Court to appeal against the stay.

In its order on Monday, the Supreme Court asked Sahara to go to the Reserve Bank of India for a hearing on June 12. The central bank's comments were not immediately available.

SIFCL is one of the biggest finance companies and is based in the northern Indian city of Lucknow and has 42.5 million customers and 1508 service centres. The Sahara group has interests in financial services, entertainment, real estate and sports.

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