Recorded RBI impact
License cancellation
License cancellation · Fresh imposition
Published by RBI
28 Nov 2003
Case Brief
The Reserve Bank of India cancelled the Certificate of Registration of Kalpavriksha Industries Ltd. (formerly Orchaltree Leasing & Financing Ltd.) on November 13, 2003 under Section 45-IA of the RBI Act, 1934. The company, which had been carrying on non-banking financial institution business from Mumbai/Thane, is therefore barred from transacting NBFC business as defined in the Act.
Why RBI Acted
The Reserve Bank of India cancelled, on November 13, 2003, the Certificate of Registration issued to Kalpavriksha Industries Ltd. (formerly Orchaltree Leasing & Financing Ltd.) under Section 45-IA of the Reserve Bank of India Act, 1934. The stated effect is that the company is no longer permitted to transact the business of a non-banking financial institution as defined in Section 45-I(a) of the Act.
Operating Impact
The company must stop carrying on non-banking financial institution activities. Counterparties and customers can no longer rely on it for NBFC services, and the cancellation takes immediate forward effect from the stated date.
Regulatory Basis
- Section 45-IA of the Reserve Bank of India Act, 1934
- Clause (a) of Section 45-I of the Reserve Bank of India Act, 1934
Action Facts
- Primary Impact
- License cancellation
- Order Date
- 13 Nov 2003
- Effective From
- 13 Nov 2003
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- NBFC