Tuesday, 15 September 2015

Sahara's position unshaken in spite of ongoing pressures

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 which Sahara approached the Courts and Hon'ble Allahabad High Court as well as subsequently, even the Hon'ble Supreme Court of India, while providing relief to Sahara, had quashed the RBI's ban order and asked RBI to hear SIFCL afresh. In pursuance of this, SIFCL and RBI, in a series of meetings in a mutually accepted manner decided a sun-set period for the NBFC business of SIFCL whereby from 2011 SIFCL was to stop taking fresh deposits and return the erstwhile deposits and eventually, in 2015 close the NBFC. It is in pursuance of this mutually decided upon arrangement and as per the wish of Sahara that the RBI has cancelled this licence and therefore is not at all any kind of blow, etc., to Sahara in any manner, as is being mentioned by some.

Moreover, regarding the SEBI order on Sahara Mutual Fund, we would like to mention that the mutual fund business of Sahara is very small with total assets under management of Rs. 134.29 crore only and is in infancy state with no major consequences on the group. Moreover, the actual reason behind SEBI's action is that SEBI has asked to change the sponsorer company in which Shri Subrata Roy Sahara ji was there. SEBI can only explain the basis of their decision to do so. However, Sahara is in the process of doing the needful as SEBI has directed.

Sahara stands on strong foundations which are evident from its un-withered standing even during the current constraints. However, Sahara will overcome this momentary constraint once its bank accounts and properties are de-freezed by the Hon'ble Supreme Court and our Chairman's judicial custody is recalled.

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