Action on Commercial Credit Corporation (1943)
Case Brief
The Reserve Bank of India cancelled the Certificate of Registration of 29 companies under Section 45-IA(6) of the RBI Act, 1934. The listed entities include firms based in Mumbai, Thane, Kolhapur, Akola and Pune. Following cancellation, the companies are prohibited from carrying on business as a Non-Banking Financial Institution under Section 45-I(a) of the RBI Act, 1934.
The Reserve Bank of India exercised its powers under Section 45-IA(6) of the Reserve Bank of India Act, 1934 to cancel the Certificate of Registration (CoR) of 29 companies. The release lists each company and states that, as a result, the above companies shall not transact the business of a Non-Banking Financial Institution as defined in Section 45-I(a) of the RBI Act, 1934.
Severity Assessment
Cancellation of the Certificate of Registration is a license cancellation, which is severity 5 regardless of any additional details.
All 29 listed companies lose their NBFC registration and must stop transacting NBFC business. This directly affects the firms themselves and any customers or counterparties relying on their non-banking financial activities. The prohibition takes effect from the cancellation dates stated in the release (June 15, 2018 or June 28, 2018, depending on the company).
Published as The Commercial Credit Corporation (1943) Private Limited
Published as Silver-star Commercial Company Limited
Published as Sanghvi Investments and Leasing Limited
Published as Leela Capital & Finance Limited
Published as Yashraj Investment and Leasing Co. Private Limited
Published as Seth Leasing Private Limited
Published as Sirius Capital Services Limited
Published as Credibility Financial Services Private Limited
Published as Dubash Holdings Private Limited
Published as Yashila Investment and Finance Company Private Limited
Published as Sankala Finvest Limited
Published as Vindhyachal Mercantiles Limited
Published as Rikhav Financial Services Private Limited
Published as Duracon Financial Services Private Limited
Published as Kirtimoya Capital Limited
Published as Godavari Corporation Private Limited
Published as Rapid Investments Limited
Published as Prithvi Capital Markets Limited
Published as R. Piyarelall Finance & Investment Private Limited
Published as Nilkanth Engineering Limited
Published as Melwani Finance Limited
Published as Jotirling Finance and Investment Limited
Published as Golden Star Capital Tech Limited
Published as Indo Gulf Industrial Finance and Investments Private Limited
Published as Maasti Leasing & Financing Company Private Limited
Published as Trophy Investment and Finance Private Limited
Published as Shrinkhla Securities Limited
Published as Multiplier Finance and Investments Private Limited
Published as Pravik Finance and Investment Company Private Limited