Case Brief
What Happened
RBI, by order dated March 24, 2025, imposed a monetary penalty of ₹52.70 lakh on Phoenix ARC Private Limited. The penalty was levied for non-compliance with RBI’s directions on ‘Settlement of dues payable by the borrower’ under Section 12 read with Section 30A(1) of the SARFAESI Act, 2002. RBI said the company settled dues of certain borrowers with aggregate outstanding principal of more than ₹1 crore without the prior approval of its Board of Directors, as required by the directions. The action follows a statutory inspection with reference to the company’s financial position as on March 31, 2023, and RBI noted the penalty is without prejudice to any other action that may be initiated.