In a fresh jolt to Saharas, Reserve Bank of India has cancelled Sahara India Financial Corporation's certificate of registration as non-banking financial institution (NBFC).
"Following the cancellation of registration certificate, the above company cannot transact the business of a non-banking financial institution as laid down under clause (a) of Section 45-I of the Reserve Bank of India Act, 1934," the central bank said in a statement.
The registration of the Lucknow-headquartered NBFC stands cancelled with effect from September 3, it added. The NBFC was registered in December 1998.
Earlier in July, market regulator Sebi had cancelled the registration of Sahara Mutual Fund saying it was no longer 'fit and proper' to carry out this business and ordered transfer of its operations to another fund house.
The group is engaged in a long-running battle with Sebi in a case related to refunds totalling millions of rupees to investors
