RBI Cancels Registration of 7 NBFCs; 14 Others Surrender Certificates
Moneylife Digital Team 15 May 2023
The Reserve Bank of India (RBI) has cancelled the certificate of registration of seven non-banking finance companies (NBFC), three from Chhattisgarh, two each from Karnataka and Madhya Pradesh. Separately, the central bank has said that 14 NBFCs have surrendered their certificate of registration (CoR), including L&T Infrastructure Development Projects Limited.
 
Those whose registration has been cancelled by RBI include, Karnataka based Coorg Tea Company Limited and Genfin Capital Private Limited, Madhya Pradesh based J.V.Modi Securities Limited and K K Patel Finance Limited and Chhattisgarh based Trimurthi Finvest Limited , East West Finvest India Limited and Purvi Finvest Limited.
 
RBI has not given any specific reason for the cancellation, its statement merely says, "...in exercise of powers conferred on it under section 45-IA (6) of the RBI Act, 1934, has cancelled the certificate of registration...As such, the above companies shall not transact the business of a non-banking financial institution-NBFI, as defined in clause (a) of Section 45-I of the RBI Act." 
 
The 14 NBFCs who have surrendered their CoR include nine NBFCs from West Bengal and one each from Bihar, Assam, Karnataka, Tamil Nadu and Punjab.
 
It is understood that seven NBFCs surrendered their CoR following a decision to exit from the non-banking finance business, five ceased operations following corporate actions such as amalgamation, dissolution, merger or voluntary strike-off, says an RBI press release. The remaining two NBFCs have surrendered their CoR because they do not require registration under criteria prescribed for unregistered Core Investment Company (CIC).
 
West Bengal -based Lunia Trading & Investment Private Limited and Swastik Goods and Suppliers Pvt. Ltd have surrendered their registration certificate. RBI has issued an order for cancellation of their registration on 6 April 2023.
 
Gipsy Management Pvt Ltd and Shiba Fabspin Pvt. Ltd from West Bengal have surrendered their registration certificate and RBI has issued an order for cancellation of their registration on 19 April 2023 and 21 April 2023, respectively.
 
Casablanca Broking & Agency Pvt. Ltd, Janpragati Syntex Pvt Ltd , Nalimbur Mercantile Pvt Ltd, Josan Deposits and Advances Limited and Wondermax Mercantile Pvt Ltd all from West Bengal the order for the cancellation of their registration by RBI  is 19 April 2023
 
Aurangabad, Bihar-based Icseva Finance Private Limited, which was issued a registration in 2022, also decided to surrender its certificate. RBI issued an order for this on 10 April 2023.
 
RBI says, Assam State Esar Entrade Ltd  also surrendered its registration as NBFC and it had issued an order on 23 April 2023. The central bank issued another order for cancelling registration certificate of Karnataka -based Maba Corporate Services Private Limited on 23 April 2023.
 
L&T Infrastructure Development Projects Limited of Chennai in Tamil Nadu have surrendered their registration certificate and RBI has issued an order for cancellation of their registration on 31 March 2023 and for Punjab based Melinex Investment and Finance Private Limited cancellation of their registration is 3 April 2023.
 
In a statement, RBI says, "the...NBFCs have surrendered the certificate of registration granted to them by the RBI. The RBI, in exercise of powers conferred on it under Section 45-IA (6) of the RBI Act, 1934, has therefore cancelled their certificate of registration. As such, the above companies shall not transact the business of a Non-Banking Financial Institution, as defined in clause (a) of Section 45-I of the RBI Act."
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