Vague allegations and depositor repayment concerns led the Court to require a fresh viable scheme from the Kuber Group.

Delhi HC treated the allegations against the Kuber Group as general and vague, and noted that the record did not show the company as beyond redemption in the RBI's view. The Court also observed that the writ petition's filing and publicity had weakened depositor confidence and affected repayment capacity. It considered that excluding the group entirely would not protect the interests of small depositors because a workable repayment mechanism was still required. The Court therefore declined to proceed further on the petition qua the group and required a fresh, viable repayment scheme to be placed before it within the time granted.

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Issues: Whether the allegations against the Kuber Group justified continuing coercive action in the writ petition and whether the Court should proceed on the basis of the petition as against that group.

Analysis: The allegations against the group were found to be general and vague, and the record showed that the Reserve Bank of India had not treated the company as beyond redemption. The Court noted that the filing and publicity surrounding the writ petition had eroded depositor confidence and contributed to the company's difficulty in meeting repayments. At the same time, the Court considered that a complete shut-out of the group would not serve the interests of the thousands of small depositors, since a workable repayment mechanism was still necessary. The Court therefore declined to proceed further on the petition as filed against the group, but required the group to place a fresh and viable scheme before the Court.

Conclusion: The Court refused to proceed on the writ petition qua the Kuber Group and instead directed it to submit a fresh scheme within the time granted.

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