September 8, 2004
The Reserve Bank of India, has on August 19, 2004 cancelled
the certificate of registration granted to Dani Finlease Limited, Mumbai, having
its registered office at 4B Barodawala Mansion, 81 Dr. Annie Besant Road, Worli,
Mumbai-400 018 for carrying on the business of a non-banking financial institution.
Following cancellation of registration certificate, Dani
Finlease Limited cannot transact the business of a non-banking financial institution.
The company has also been prohibited from acceptance of deposits and prohibited
from alienation of assets. The company is, however, under an obligation to repay
public deposits as per the terms and conditions of the contract of deposit.
Under powers conferred by Section 45IA of the Reserve Bank
of India Act, 1934, the Reserve Bank can cancel the registration certificate
of non-banking financial company. Under Section 45MB (1) of this Act, the Reserve
Bank can prohibit non-banking financial company for accepting deposits; and
under Section 45MB (2), it can prohibit the company from alienating its assets.
The business of a non-banking financial institutions is defined in clause (a)
of Section 45IA of the Reserve Bank of India Act, 1934.
P.V.Sadanandan
Manager
Press Release : 2004-2005/269
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