J.J. Investment Counsel Private Ltd: RBI Enforcement History

Recorded RBI impact

License cancellation

License cancellation · Fresh imposition

Published by RBI

20 Feb 2018

Case Brief

The Reserve Bank of India cancelled the Certificate of Registration of six companies under Section 45-IA(6) of the RBI Act, 1934. The named entities are Sujala Commercial Ltd., Alchemist Capital Limited, Lyton Consultancy Pvt. Ltd., Goel Cottex Limited (presently M/s PLG Plast Ltd), J.J. Investment Counsel Private Ltd., and Kuldip Finance Limited. The release does not spell out the underlying factual violations; it states the legal consequence that these companies shall not transact the business of a Non-Banking Financial Institution as defined in the RBI Act.

Why RBI Acted

Licensing breach

The Reserve Bank of India exercised powers under Section 45-IA(6) of the RBI Act, 1934 to cancel the Certificate of Registration of six companies. The release does not specify a misconduct narrative beyond the cancellation itself; the legal consequence stated is that these companies shall not transact the business of a Non-Banking Financial Institution as defined under Section 45-I(a) of the RBI Act, 1934.

Operating Impact

These six companies are barred from carrying on NBFC business going forward. Customers, borrowers, and counterparties should no longer treat them as authorised non-banking financial institutions after the cancellation dates stated in the release.

Regulatory Basis

Section 45-IA (6) of the Reserve Bank of India Act, 1934
clause (a) of Section 45-I of the RBI Act, 1934

Action Facts

Primary Impact: License cancellation
Order Date: 19 Dec 2017
Effective From: 19 Dec 2017
Entities Affected: 6
Entity Role: Bulk Member
Entity Type: NBFC

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J.J. Investment Counsel Private Ltd

Case Brief

Why RBI Acted

Operating Impact

Regulatory Basis

Action Facts

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