RBI moves SC to stop Sahara entity from ‘alienating’ assets

The RBI, however, requested the court to restrain SIFCL from utilising its assets and securities for paying dues to Sebi, asserting that SIFCL was a Residuary Non-Banking Financial Firm and any money from alienation of its assets could only be used for the purpose of paying into SEBI-Sahara Refund Account.

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The RBI said that it was necessary to ensure that the funds of the SIFCL were utilised only for the purpose of repayment to the depositors and were not diverted on the pretext of complying with the directions of the court to deposit Rs 10,000 crore to secure Roy’s release from jail.

“RBI had carried out the inspection of the company at annual intervals under RBI Act and it was noticed that the deposit-taking activity of SIFCL were not in conformity with prudent practices … were being violated,” said the application, also seeking direction to SIFCL to disclose the details of its assets and aggregate liability to depositors of the company as on December 31, 2014.

It has also sought a direction to credit to an escrow account with any nationalised bank if any amount already deposited in the SEBI-Sahara Refund Account or account of the partnership firm Sahara India or any other group derived out of the assets of SIFCL.

The RBI has alleged that Rs 484.67 crore had been transferred to the account of its various branches after alienating the assets and securities instead of being utilised for repayment to depositors or crediting to SEBI-Sahara Account, as stipulated by the court. A bench led by Justice TS Thakur is likely to take up this plea on February 20.