Recorded RBI impact
License cancellation
License cancellation · Fresh imposition
Published by RBI
21 May 2018
Case Brief
The Reserve Bank of India cancelled the Certificates of Registration of M/s Growell Auto Leasing Private Limited and M/s Adirudh Capital and Investment Private Limited under Section 45-IA(6) of the RBI Act, 1934. With the cancellation, both companies can no longer transact the business of a Non-Banking Financial Institution under Section 45-I(a).
Why RBI Acted
The Reserve Bank of India cancelled the Certificate of Registration of two NBFCs in exercise of powers under Section 45-IA(6) of the Reserve Bank of India Act, 1934: M/s Growell Auto Leasing Private Limited and M/s Adirudh Capital and Investment Private Limited (previously known as Desika Vinayagar Credit and Investment Private Limited). As a result, these companies are no longer permitted to carry on the business of a Non-Banking Financial Institution as defined under Section 45-I(a) of the RBI Act.
Operating Impact
Both entities must stop NBFC business activities immediately and cannot legally undertake non-banking financial institution operations after the cancellation date. The action affects the companies directly and removes their ability to accept or conduct NBFC business.
Regulatory Basis
- Section 45-IA (6) 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
- Effective From
- 2 May 2018
- Entities Affected
- 2
- Entity Role
- Bulk Member
- Entity Type
- NBFC
Related Entities
Entities similar to M/s Adirudh Capital and Investment Private Limited (Previously known as Desika Vinayagar Credit and Investment Private Limited)