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RBI directed to give Sahara fresh hearing

New Delhi: The Supreme Court on Monday directed the Reserve Bank to give a fresh hearing to the Sahara India Financial Corporation Ltd. (SIFCL) while keeping in abeyance the action against the company, including the ban on it from taking fresh deposits.

Disposing of an appeal filed by the RBI against the Allahabad High Court’s interim stay on the action it took against the SIFCL, the Supreme Court said: “Since the entire matter is disposed of by this court there will be no need for the High Court to deal with it.”

Accordingly, a Bench comprising Justices Arijit Pasayat and P.P. Naolekar said the SIFCL will now appear before the RBI on June 12 for a personal hearing.

“Till the matter is disposed of afresh by the RBI, its order of June 4 will not be given effect to and at the same time interim protection granted to Sahara India Financial Corporation by the High Court shall not be operative,” the Bench said.

At the outset, the Bench said the nature of the controversy involved in the matter warranted another opportunity for the para-banking company to respond elaborately to the show-cause notice issued by the RBI.

The court said it would be open for the SIFCL to appear before the RBI with all materials to substantiate the reply given by it to the show-cause notice and the authorities would consider them before passing a fresh order.

“We are of the view that in view of peculiar facts involved in the matter, the RBI should give [an] opportunity to the SIFCL for personal hearing,” the Bench said.

The RBI had approached the Supreme Court on June 6 challenging the High Court stay on its order. — PTI

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