Recorded RBI impact
Fine: Rs 5.00 L
Monetary penalty · Fresh imposition
Published by RBI
6 Sept 2024
Case Brief
RBI imposed a monetary penalty on Godrej Housing Finance Limited by order dated August 29, 2024. The action was taken under Section 52A of the National Housing Bank Act, 1987 for non-compliance with the Non-Banking Financial Company - Housing Finance Company (Reserve Bank) Directions, 2021. RBI said the company failed to obtain two independent valuation reports before sanctioning certain loans of ₹75 lakh and above. The penalty follows supervisory findings from the statutory inspection conducted by the National Housing Bank with reference to the company’s financial position as on March 31, 2022.
Why RBI Acted
RBI imposed a monetary penalty under Section 52A of the National Housing Bank Act, 1987 for non-compliance with provisions of the Non-Banking Financial Company - Housing Finance Company (Reserve Bank) Directions, 2021. The sustained charge was that the company did not obtain two independent valuation reports before sanctioning certain loans of ₹75 lakh and above, based on supervisory findings from the statutory inspection conducted by the National Housing Bank as of March 31, 2022.
Operating Impact
Godrej Housing Finance Limited must absorb the ₹5 lakh penalty, and the order serves as a regulatory finding of non-compliance. No operational restriction is imposed by this release, but RBI notes the penalty is without prejudice to any other action that may be initiated separately.
Regulatory Basis
- Section 52A of the National Housing Bank Act, 1987
Action Facts
- Primary Impact
- Fine: Rs 5.00 L
- Order Date
- 29 Aug 2024
- Effective From
- 29 Aug 2024
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- NBFC