Action on Aristo Finance and Investments
Case Brief
The Reserve Bank of India cancelled the Certificates of Registration of 35 companies under Section 45-IA(6) of the RBI Act, 1934. The order lists 35 NBFCs, many based in Chennai and other Tamil Nadu locations, and states that the affected companies shall not transact the business of a Non-Banking Financial Institution as defined in the RBI Act. This is a fresh cancellation action affecting all 35 named entities.
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 of 35 named companies. As a result, these entities are no longer permitted to transact the business of a Non-Banking Financial Institution as defined under clause (a) of Section 45-I of the RBI Act, 1934.
Severity Assessment
Cancellation of Certificates of Registration is a full license cancellation, which falls in severity 5 regardless of any monetary amount.
Each of the 35 companies is barred from carrying on non-banking financial business going forward. They must cease NBFC operations and cannot legally transact as non-banking financial institutions after the respective cancellation dates stated in the release.
Published as Aristo Finance and Investments Limited
Published as Ishwarya Lakshmi Finance Private Limited
Published as Karthikeya Finance Limited
Published as MGS Investments Private Limited
Published as Sri Senthil Andavar Finance Limited
Published as Aadhi Finance Limited (presently known as Aadhi Finance Private Limited)
Published as CRN Investments Private Limited
Published as G.B. Nahar Hire Purchase Systems Private Limited
Published as Rajamurugan Finance Limited
Published as Negapatam Industrial and Finance Company Limited
Published as Sreevatsalakshmi Finance Corporation Limited
Published as V.K. Fincap Services Private Limited
Published as Valluvar Finance Limited
Published as Surana Vijay Finlease Limited
Published as Sri Vari Finance and Leasing Company Private Limited
Published as Safety General Finance and Investments India Limited
Published as Bhavadharini Finance Limited
Published as Evergreen Finlease & Estates Limited
Published as Jain Finance & Investment Limited
Published as Lodha Finance India Limited
Published as Morgan Leasing & Finance Limited
Published as Vadapathi Mangalam Investments Private Limited
Published as Charithra Finance Private Limited
Published as Sree Gadhaiya Finance & Overseas Limited
Published as Indma (Credits) India Limited
Published as Trichem Holdings Limited
Published as Mayiladuthurai P.S. Finance Ltd
Published as Elders Consultants & Investment Company Private Limited
Published as Sunask Finance Limited
Published as Gem Benefit Fund Limited
Published as Shri Nemiraj Finance Limited
Published as Sethia Finance Private Limited
Published as Senthilnathan Financiers Private Limited
Published as SCFS Finance Private Limited
Published as Deccan Financial Services Private Limited