Sahara exits non-banking financial business; launches real estate project in South
13 September 2008
Mumbai: Sahara India Investment Corporation has exited the non-banking financial business, the Reserve Bank of India said in a press release.
As such, the RBI has cancelled the certificate of registration of Sahara India Investment Corporation Limited with effect from 11 August 2008, for carrying on the business of a non-banking financial institution in terms of section 45-IA (6) of the Reserve Bank of India Act, 1934, the RBI said in a release.
This will, however, not affect the business of Sahara India Financial Corporation, the flagship company of the group involved in fund-based activities.
Spokesperson of Sahara India said that the group exited from non-banking business and decided to enter the real estate business.
Sahara India has been under the RBI scanner for some time now over lack of conformity with rules in its insurance business.
Sahara India Investment Corporation, which is one of the group companies of the Lucknow-based Sahara group, cannot transact the business of a non-banking financial institution, the release further said.
Sahara Prime City Limited, the real estate arm of Sahara India Pariwar, has announced the launch of its flagship brand 'Sahara City Homes' in Coimbatore. The project is a part a chain of townships proposed to be developed in 217 cities across the country. Sahara City Homes, Coimbatore is the second project of Sahara group to be launched in south India, after the launch of Sahara Grace - brand of residential complex at Kochi, in April 2008.