A vacation bench at the Lucknow Bench of the Allahabad High Court granted the stay on a petition filed by Sahara India Financial Corp's Executive Director O P Srivastava and posted the matter for further hearing in last week of July.
RBI had yesterday "prohibited (SIFCL) with immediate effect from accepting any deposits in whatsoever manner including installments under any running daily deposit or other deposits."
The residuary non-banking company (RNBC) was also asked by the banking regulator to repay the existing deposits on maturity.
The bench comprising Justices U K Dhawan and Shabihul Hasnain granted the stay on the RBI order, Sahara's counsel Prashant Chandra said.
The RBI had, however, allowed the company to carry on its "other business activities" as per the law.
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