The Reserve Bank of India, has on
July 5, 2005 cancelled the certificate of registration granted to Pontiac Leasing
Ltd., having its registered office at T 6E, A J C Bose Road, Kolkatta-700 014
for carrying on the business of a non-banking financial institution.
Following cancellation of registration
certificate, Pontiac Leasing Ltd., 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
45-IA of the Reserve Bank of India Act, 1934, the Reserve Bank can cancel the
registration certificate of non-banking financial company. Under Section 45-MB
(1) of this Act, the Reserve Bank can prohibit non-banking financial company
for accepting deposits; and under Section 45-MB (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 45-IA of the Reserve Bank of India Act,
1934.
P.V.Sadanandan
Manager
Press Release: 2005-2006/106
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