Case Brief
What Happened
On July 25, 2005, the Reserve Bank of India cancelled the certificate of registration of Daffordils Finance Limited, Seohara, whose registered office was at Jain Street, Seohara, Bijnor District, Uttar Pradesh. The action was taken under Section 45-IA(6) of the RBI Act, 1934. As a result, the company cannot carry on the business of a non-banking financial institution. RBI also prohibited it from accepting deposits and from alienating its assets under Section 45MB(1) and 45MB(2).