Subroto Roy-led Sahara Group's para-banking company on Thursday obtained a stay on Reserve Bank's ban on accepting fresh deposits from investors.
A vacation bench at the Lucknow Bench of the Allahabad High Court granted the stay on a petition filed by Sahara India Financial Corp's executive director O P Srivastava and posted the matter for further hearing in last week of July.
RBI had on Wednesday "prohibited (SIFCL) with immediate effect from accepting any deposits in whatsoever manner including installments under any running daily deposit or other deposits."
The residuary non-banking company (RNBC) was also asked by the banking regulator to repay the existing deposits on maturity.
The bench comprising U K Dhawan and Sabir ul Hasan granted the stay on the RBI order, Sahara's counsel Prashant Chandra told PTI.
The RBI had, however, allowed the company to carry on its "other business activities" as per the law.
The Reserve Bank of India on Wednesday said the company has violated the requisite directions and guidelines. After examining Sahara's submissions in response to a show-cause notice from RBI, the regulator decided to put in place the curbs on accepting deposits.
RBI said that the violations related to maintenance of directed investments, payment of minimum interest rate, asset-liability management guidelines and know-your-customer (KYC) norms stipulated for opening of deposit accounts and the details on the agents of the company deployed for deposit mobilisation.