Threat from Sahara Depositors to RBI

Thursday, June 05, 2008
Sahara fallout: UP orders security to RBI
Blue Star

Lucknow: The Uttar Pradesh government has directed all district police chiefs to ensure the security of all establishments of the RBI after it apprehended security threats from depositors and collection agents of Sahara India Financial Corporation Limited (SIFCL) which was prohibited from accepting deposits.

"In a bid to maintain law and order in the state, we have directed district police chiefs to ensure the security of RBI establishments in state and SIFCL also," Secretary (Home) Mahesh Kumar Gupta told reporters today.

Asked about the reasons of providing security to SIFCL, Gupta said the decision was taken to ensure law and order.

He said that after yesterday's decision RBI Deputy General Manager, Lucknow, Ram Sudhar had requested the UP government to provide security as it apprehended trouble from depositors and collecting agents of SIFCL.

Meanwhile, Chief Secretary Atul Kumar Gupta in a letter written to Executive Director, RBI, Mumbai G. Gopal Krishnan said nothing seems to have been done to satisfactorily address the concerns of depositors.

Mentioning the letter of DGM, RBI Lucknow, Gupta said it did not mention anything about how the interests of depositors would be protected and what steps were being taken to satisfy the apprehensions and queries of the depositors.

The Chief Secretary said in the letter that it appeared imperative that RBI clarified to the depositors at large how their interests were being protected and what it was doing to ensure it.

"The RBI order to SIFCL to repay the deposits as and when they mature will not provide any comfort to depositors in the absence of such an assurance," it said.

Gupta requested the RBI official to issue a press release explaining to the depositors the steps being taken by it to ensure protection of their interests.

"The UP government should have been taken into confidence sufficiently in advance to prepare for law and order arrangements and not presented with a fait accompli," the Chief Secretary's letter to Gopalkrishnan said.

Meanwhile, the Sahara Group is all set to approach the Supreme Court Friday to ensure that no ex-parte order is passed against the company's para-banking operations.

"The caveat is likely to be filed in the apex court tomorrow and I have given instructions to the company," Senior advocate Prashant Chandra, who appeared for the Sahara Group in the Allahabad High Court today, told PTI.

"We are expecting that RBI will appeal against the High order," he said.

The Lucknow bench of Allahabad High Court today stayed the RBI ban on Sahara's para-banking company from taking fresh deposits.

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