Recorded RBI impact
License cancellation
License cancellation · Fresh imposition
Published by RBI
25 Jul 2008
Case Brief
On June 13, 2008, the Reserve Bank of India cancelled the Certificate of Registration of Mukut Finlease Limited, whose registered office was at Mukut Complex, Rekabganj, Faizabad (U.P.). The cancellation was issued under Section 45-IA(6) of the RBI Act, 1934, for carrying on the business of a non-banking financial institution. As a result, Mukut Finlease Limited cannot transact NBFC business going forward.
Why RBI Acted
The Reserve Bank of India cancelled the certificate of registration granted to Mukut Finlease Limited under Section 45-IA(6) of the RBI Act, 1934. The text states the company was registered to carry on the business of a non-banking financial institution, and after cancellation it cannot transact that business.
Operating Impact
Mukut Finlease Limited is barred from carrying on any non-banking financial institution business after the cancellation. This directly affects the company’s operations and counterparties relying on its NBFC activities; no deadline is stated beyond the cancellation date of June 13, 2008.
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
- Order Date
- 13 Jun 2008
- Effective From
- 13 Jun 2008
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- NBFC