A division of bench of the Allahabad High Court on Monday stayed the Securities and Exchange Board of India restraining the Sahara India Group from soliciting funds from the public.
The Lucknow bench of the high court comprising justices Devi Prasad Singh and Virendra Kumar Dixit passed this order on a writ petition filed by Sahara India Real Estate Corporation Ltd.
Fixing 12 January as the next date of hearing, the bench asked the Sahara India Group to furnish all necessary information to the Registrar of Companies (RoC), Kanpur, and directed the union government and RoC to investigate the interest of shareholders and submit a status report by then.
According to the order, Sahara could now continue to take deposits under consent granted by the RoC, approving the resolution of company's board of directors.
The bench had on 1 December reserved its order, saying that the union government and SEBI shuld not coerce the Sahara Group.
On Monday, while passing the order, the court said it would adjudicate whether the market regulator had a right to interfere with the affairs of an unlisted company. The court further said that the question of whether SEBI could force a company to get listed also requires consideration.