Action on Basant Motor & General Finance
Case Brief
RBI, acting under Section 45-IA(6) of the Reserve Bank of India Act, 1934, cancelled the Certificate of Registration of 36 NBFCs listed in the release. The affected entities include firms based in Punjab, Chandigarh, Himachal Pradesh, Odisha, and Andhra Pradesh. The release further states that these companies shall not transact the business of a Non-Banking Financial Institution under Section 45-I(a) of the RBI Act, 1934.
In exercise of powers under Section 45-IA(6) of the Reserve Bank of India Act, 1934, RBI cancelled the Certificate of Registration (CoR) of 36 named companies. The release states that, as a consequence, these 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 CoR is a license cancellation, which is severity 5 regardless of any other considerations.
All 36 named companies lose their RBI registration and must stop carrying on NBFC business. Customers, borrowers, and counterparties dealing with these entities are impacted because the firms are no longer permitted to operate as non-banking financial institutions. The restriction is immediate as stated by the cancellation dates in the table.
Published as Shind Finance & Hire Purchase Limited
Published as Zamindara Investment & Consultancy Private Limited
Published as Aradhana Trade Links Limited
Published as Blue Peaks Deposits & Advances Limited
Published as Fairgood Construction & Finance Private Limited
Published as Indigo Fincap Private Limited
Published as K.C. Leasing Limited
Published as Kay Ess Hire Purchase Private Limited
Published as Libra Finance and Carriers Pvt. Ltd.
Published as SBR Fincap and Hire Purchase Ltd.
Published as Sekhon Hire Purchase Pvt. Ltd.
Published as Basant Motor & General Finance Pvt. Ltd.
Published as Winsome Capital Services Limited (Now Known as Voguestock Commodities Limited)
Published as Adarsh Financiers Limited
Published as BRC Hire Purchase Private Limited
Published as Brar Investments Private Limited
Published as Gambhir Hire Purchase Ltd
Published as Jogindera Finance and Leasing Private Limited
Published as Kartar Fincap Limited
Published as Lamba Investment and Financial Services Pvt. Ltd.
Published as Manimajra Motor Finance Private Limited
Published as Satbhavana Finance Private Limited
Published as Shreyans Financial and Capital Services Limited
Published as Sohal Leasing Limited
Published as Anandpur Sahib Finance Private Limited
Published as Preet Credit and Capital Private Limited
Published as Dada Financial Services Private Limited
Published as Ishan Credits Limited
Published as Trishna Tradefin Ltd.
Published as Smily Leasing And Finance India Ltd.
Published as Vardhan Properties and Investment Limited
Published as Ashish Leasing and Finance Limited
Published as Kulwant Leasing and Investment Private Limited
Published as Natural Finance and Investment India Limited
Published as Strategybot Finance Private Limited (presently known as Profound Finance Private Limited)
Published as Vihari Chits & Finance Private Limited