Case Brief
What Happened
In exercise of powers under Section 45-IA(6) of the RBI Act, 1934, the Reserve Bank of India cancelled the Certificate of Registration of 31 companies. The entities include multiple NBFCs based mainly in Kolkata, along with firms in Kanpur, Agra/Aligarh, and Muzaffarnagar. As a result, the listed companies are barred from transacting the business of a non-banking financial institution under Section 45-I(a) of the RBI Act.
Quick Facts
- Primary Impact
- License cancellation
- Entity Type
- NBFC
- Location
- Kolkata, West Bengal
- Order Date
- Unknown date
- Effective From
- 12 Sept 2018
- Entities Affected
Why RBI Acted
The Reserve Bank of India exercised its powers under Section 45-IA(6) of the RBI Act, 1934 to cancel the Certificate of Registration of 31 companies. The release states that the listed companies shall not transact the business of a Non-Banking Financial Institution as defined in Section 45-I(a) of the RBI Act, 1934.
Severity Assessment
Cancellation of the Certificate of Registration is a licence cancellation, which carries severity 5 under the rubric.
Impact
The affected companies must stop carrying on NBFC business. Customers and counterparties should treat them as no longer authorised to operate as non-banking financial institutions; the restriction applies to all 31 listed entities effective from the cancellation dates stated against each company.
Regulatory Basis
- Section 45-IA (6) of the Reserve Bank of India Act, 1934
- Section 45-I of the RBI Act, 1934
Restrictions & Effective Timeline
- Effective From
- 12 Sept 2018
Affected Entities
- Jagadhatri Properties & Investments Private LimitedNBFC · Primary
Published as Jagadhatri Properties & Investments Private Limited
- Simco Business LtdNBFC · Bulk Member
Published as Simco Business Ltd.
- Pushpak Trading & Consultancy (P) LtdNBFC · Bulk Member
Published as Pushpak Trading & Consultancy (P) Ltd.
- Radiant Projects Pvt. LtdNBFC · Bulk Member
Published as Radiant Projects Pvt. Ltd.
Official RBI Source
RegOversight structures the official RBI release for search and analysis. Use the linked release as the authoritative source.