Justice Anil Dev Singh declined to accept the application moved by the Sahara Group for lifting the stay and directed it to file its reply within the next two weeks. Sahara had in its application stated that it was ready to constitute a cell to address the grievances of investors.

The Court was hearing a petition filed by investors of these companies seeking a CBI inquiry into the alleged `fraud' committed by non-banking financial companies (NBFC) and residuary non-banking companies (RNBCs) in swindling their crores of rupees of investments.

Regarding Sahara Airlines, which did not fall under the RBI, the court ordered the SEBI to place the status report on it within two weeks. The petitioners had alleged that Sahara Airlines had issued bonds which was not under its power. They also wanted to ascertain whether the airlines had got any clearance from the SEBI for issuing the bonds.

The investors demanded a CBI inquiry to bring to the fact who were the officials of RBI and SEBI in whose collusion the fraud was being committed by the NBFCs and RNBCs and take actions against the erring officials.

Citing an example, the petition moved by the public action forum and five other investors alleged that 20 companies of JVG and Sahara groups each had defrauded investors to the tune of approximately Rs 9,000 crore.

The petition urged the court to prevent these companies from raising fresh investment or deposits from the investors until they are given clearance by RBI, SEBI and Company Law Board.

The judge had on August 13 passed the restrain order while issuing notices to the Reserve Bank of India Governor, Dr Bimal Jalan, the finance ministry, the Securities and Exchange Board of India (SEBI), Company Law Board and 40 others.

The judge had taken a very serious view of the plight of the investors at the hands of RBI, SEBI and Company Law Board by allowing the NBFCs and RNBCs to carry out their `fraud' financial activities without any check.

``When investors are losing money, why is RBI not keeping a check on banking corporations, which are required to keep some money in the bank as security,'' the judge asked the RBI counsel while questioning the role of the RBI in the matter.

Among the others named in the petition are the secretaries in the Department of Company Affairs and the Ministry of Law and Company Affairs, the Chairman of the Central Board of Direct Taxes, the Commissioner of Income Tax, the Delhi police commissioner, the director of CBI, the Union Cabinet Secretary, the Chief Secretaries of Madhya Pradesh, Delhi and Uttar Pradesh, the Secretary of the Monopolies and Restrictive Trade Practices Commission, the Institute of Chartered Accountants of India and NBFCs and RNBCs and their representatives.

Meanwhile, the RBI filed a provisional status report, as directed by the court, regarding the financial activities of the non-banking financial firms, including those of Sahara, JVG and Kuber groups.

Finding the information made available by the RBI as outdated report, the judge directed the RBI to place an affidavit within three weeks placing the latest financial status of the companies.

The judge had in its August 13 order also asked for the names of the managing directors and directors or partners of JVG Finance Ltd, JVG Departmental Stores Ltd, Hoffland Finance Ltd, Hoffland Investments Ltd, Sahara India Airlines, Sahara India Services and Investments Ltd, Sahara India Financial Corporation Ltd, Sahara India Commercial Corporation Ltd, Asia Television Network Ltd, Arihant Credit Capital Ltd, Crystal Credits Corporation Ltd, JVG Investments, Rapti Growth Fund Ltd, Krishi Export Commercial Corporation Ltd, and Kuber Mutual Benefits Ltd.