RBI restricts DFL Infra from conducting biz without permission

Written by Press Trust of India | New Delhi | Updated: Mar 19 2014, 10:56am hrs
The Reserve Bank of India has restricted DFL Infrastructure Finance to conduct business activities without prior permission as the company was found to be concealing and misrepresenting its financial position.

In a regulatory filing to the BSE, the company on Tuesday said that it be won't be allowed to sell, transfer, create charge or mortgage or deal in any manner with its property and assets without a prior written permission from the RBI.

"An inspection of the books of accounts of the company revealed certain disquieting feature including concealment and misrepresentation of its financial position by the company," the RBI had said in a release in February.

DFL Infrastructure Finance said the directive came from the RBI following the findings of the inspection of the books and accounts and other records as on March 31, 2013.

The RBI said these directions were issued as an emergency measure to prevent any further damage to the financial position of the company.

"...the RBI has, in public interest and in exercise of the powers conferred on it directed that until further orders, DFL Infrastructure Finance shall not, sell, transfer, create charge or mortgage or deal in any manner with its property and assets without prior written permission of the RBI."

Further, the company has also been disallowed to declare or distribute any dividend, transact any business as well as incur any further liabilities.