Action on Baynee Industries
Case Brief
In exercise of powers under Section 45-IA(6) of the RBI Act, 1934, the Reserve Bank of India cancelled the Certificates of Registration of 31 companies. The entities listed are NBFCs across several locations, including the first named Baynee Industries Ltd. and others. Following cancellation, 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.
The Reserve Bank of India exercised powers under Section 45-IA(6) of the RBI Act, 1934 to cancel the Certificate of Registration of 31 companies. The listed entities, all NBFCs, were therefore prohibited from carrying on the business of a Non-Banking Financial Institution as defined in Section 45-I(a) of the Act.
Severity Assessment
Cancellation of CoR is a license cancellation, which is a severity-5 action regardless of any other factors.
The 31 affected companies are barred from continuing NBFC business and must stop transacting as non-banking financial institutions. This directly affects the companies themselves and any counterparties relying on their lending or finance activities.
Published as Baynee Industries Ltd.
Published as Chopra Credits Private Limited
Published as Minar Leasing Private Limited
Published as Mada Fininvest Limited (Presently known as Multiplex Fincap Limited)
Published as Modiline Finstock Private Limited
Published as Morgan Asia Limited
Published as MKG Financial Services Private Limited
Published as Caps Finstock Services Private Limited
Published as Magnus Finance Private Limited
Published as Newage Fin-lease Private Limited
Published as Nikunj Agro Trading Company Limited
Published as Marktesh Trading Limited
Published as Link Financial Services Pvt. Ltd.
Published as Usma Finlease Limited
Published as Jaunpur Autolease Company Private Limited
Published as Citizen Foods Ltd. (Presently known as Agrico Fincap Limited)
Published as Snapshot Merchants Pvt. Ltd.
Published as M & M Finsec Private Limited
Published as Manu Credits & Finance Private Limited
Published as Mayura Industrial Resources Limited
Published as Carbo Industrial Holdings Ltd.
Published as Manju Shree Portfolio Private Limited
Published as MSD Finance Company Limited
Published as Metro Leasing & Finance (India) Company Limited
Published as Competent Investment Limited
Published as Chandra Vidya Investment & Finance Private Limited
Published as Orchard Consultancy Services Private Limited
Published as Perfect Leasing & Credits Private Limited
Published as Gupta Motor & General Finance Limited (Gupta Motor and General Finance Private Limited)
Published as Vaishali Motor Finance Limited
Published as Sukhbans Finance Company Limited