Click to play videoNew Delhi: The Uttar Pradesh government on Saturday withdrew its letter to the Reserve Bank of India (RBI) asking for action against Sahara India Pariwar's para-banking company Sahara India Financial Corporation (SIFCL).
The withdrawal letter was issued just hours after Chief Minster Mayawati and archrival and Samajwadi Party supremo Mulayam Singh Yadav met on Friday in Lucknow.
The withdrawal letter is seen linked to the meeting because Mulayam and Sahara India Pariwar's Chairman Subroto Roy are considered close to each other.
The UP government had sent a letter to the RBI saying the investors' money was not safe with SIFCL, which claims to have a customer base of 60 lakh investors and deposits amounting to Rs 20,000 crore.
And on Wednesday, the RBI prohibited SIFCL from accepting any more deposits citing violation of norms but on Thursday, Sahara Group Chairman Subroto Roy got a stay order against the RBI directive from the Allahabad High Court.
The apex bank then challenged the stay order in the Supreme Court on Friday.
Commenting on the stay order Sahara Group lawyer Piyush Agarwal had said, "Blanket ban on the deposits does not serve the interest of either the depositors or the employees of the company. Therefore in the general interest of the employees, the honourable High Court has stayed the order."
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