Mumbai : Bringing to closure an over seven-year-old case, Reserve Bank has cancelled Sahara India Financial Corporation’s certificate of registration as NBFC, reports PTI.
“Following the cancellation of registration certificate, the above company cannot transact business of a
non-banking financial institution…” the Reserve Bank of India said in a statement on Monday.
The registration of the Lucknow-headquartered NBFC stands cancelled with effect from September 3, it added. The NBFC was registered in December 1998.
Earlier, markets regulator Sebi had cancelled mutual fund and portfolio management licenses of other firms of the group, which is engaged in a long-running battle with the regulator in a case related to refunds totalling thousands of crores of rupees.
Its chief Subrata Roy is in jail since March 4, 2014. Back in September 2008, a group company Sahara India Investment Corporation Limited had informed the RBI that it has “voluntarily exited non-banking financial business”.
In another order on June 4, 2008, the RBI had prohibited Sahara India Financial Corporation Ltd (SIFCL) from accepting deposits from the public and had directed SIFCL to repay the depositors on maturity and comply with the directions of the central bank.
