RBI takes slew of errant finance firms to task

Chandra Shekhar

New Delhi, Dec 13: The Reserve Bank of India has taken action against 41 erring non-banking finance companies (NBFCs) after the government made it mandatory for the them to register with the central bank in January 1997. Most of the complaints received against the NBFCs concerned non-payment of interest and deposits. The RBI has in certain cases filed winding-up petitions in the respective high courts against the companies, which on inspection, were found to be insolvent.

The companies against whom winding-up petitions had been filed by the RBI include CRB Capital Markets, New Delhi; JVG Group of companies, New Delhi; and Asia Pacific Investment Trust, Hyderabad. The central bank has also launched prosecution proceedings in respect of JVG Finance, New Delhi; JVG Leasing, New Delhi; JVG Securities, New Delhi; Hoffland Finance, New Delhi; Asia Pacific Investment Trust, Hyderabad; NITL Mutual Benefits, New Delhi; Endowment Investment, Chandigarh; and Rockland Leasing Ltd, New Delhi. In addition, the RBI hasfiled a police complaint for cheating the public under section 420 of IPC against Hoffland Finance, New Delhi.

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