A day after the RBI announced cancellation of NBFC licence of Sahara India Financial Corp Ltd, the group on Tuesday said the decision was as per “a mutually decided arrangement” between the central bank and the company.
The crisis-hit group also said it will overcome this “momentary constraint” once its bank accounts and properties are de-frozen by the Supreme Court and the judicial custody of its Chairman Subrata Roy is recalled. “Sahara stands on strong foundations which are evident from its un-withered standing even during the current constraints,” it said in a statement.
Asserting that the RBI’s latest decision “is not at all any kind of blow to Sahara in any manner, the group said the RBI in 2008 had issued an order banning NBFC (Non-Banking Financial Company) business of one of Sahara’s company - Sahara India Financial Corporation Ltd (SIFCL). Against this RBI order, Sahara had approached the Allahabad High Court and subsequently the Supreme Court of India, which asked the central bank to hear SIFCL afresh.