The Reserve Bank of India, has on
April 29, 2005 cancelled the certificate of registration granted to Bhojwani
Leasing and Finance Limited, having its registered office at 14th Floor, Dalamal
Tower, 211, Nariman Point, Mumbai-400 021 for carrying on the business of a
non-banking financial institution.
Following cancellation of registration
certificate, Bhojwani Leasing and Finance 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.
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: 2004-2005/1227
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