Subrata Roy: Some relief

Mumbai, June 17: The Reserve Bank of India (RBI) today asked Sahara India Financial Corporation Ltd not to accept any new deposit that matures beyond June 30, 2011.

“SIFCL (Sahara India Financial Corporation) is hereby directed not to accept any new deposit which matures beyond June 30, 2011 and to stop accepting instalments of existing deposit accounts also with effect from that date,” an RBI order said.

The order was passed after the RBI gave a fresh hearing to Sahara following a Supreme Court directive. On June 4 it had passed severe strictures against Sahara. Sahara head Subrata Roy was present at the hearing.

The central bank also set other conditions that limited the total amount of deposits Sahara could accept.

It said Sahara’s aggregate liability to depositors would not exceed Rs 15,000 crore as of June 30, 2009, Rs 12,600 crore as of June 30, 2010 and Rs 9,000 crore as of June 30, 2011.

Sahara had also been told to repay the deposits as and when they mature and bring the aggregate liability to zero by June 30, 2015.

The central bank further said Sahara should not treat the non-payment of instalments under any running daily deposit or other recurring deposit schemes after June 30, 2011 as a default.

Sahara shall be liable to pay the agreed rate of interest on the amounts actually held by it for the entire term of the deposit as if there was no default.

Moreover, Sahara will have to comply with the requirements of investments according to the directions given to residuary non banking companies and ensure 100 per cent compliance with know-your-customer norms for all new deposits.

“SIFCL shall, without prejudice to the above, be entitled to carry on its other business activities in accordance with law,” the RBI said in the late-evening order. It said Sahara should submit a comprehensive business plan by August 16.