(a) whether the Government have initiated action against 20 major defaulting NBFCs;
(b) if so, the details thereof;
(c) the details of 50 major NBFCs having mobilised deposit of more than Rs. 20 crores from the public and the present status of
these NBFCs; and
(d) the action taken by RBI/Company Law Board against CEAT Financial, Indian Seamless Financial and other companies ?
THE MINISTER OF STATE IN THE MINISTRY OF FINANCE (SHRI BALASAHEB VIKHE PATIL)
(a), (b), (c) & (d) :- As per Reserve Bank of India, there are 50 major NBFCs holding public deposits of more than Rs. 20.00
crore as on 31.3.2001. Out of these, RBI has taken action against 17 major defaulting NBFCs in the form of rejection of their
applications for Certificate of Registration, issuing prohibitory orders, institution of Criminal complaints, winding up petition,
etc. Among the remaining 33 companies, functioning of 27 companies is normal, 6 are facing certain temporary liquidity
problems but are not defaulting in repayment of public deposits. Details of 50 such NBFCs, including 17 major defaulting
NBFCs, are at Annexure. Action taken by RBI/Company Law Board against 17 major defaulting NBFCs is shown against each
company in this Annexure. The Eastern Region Bench of Company Law Board had passed 9 orders in respect of CFL Capital
Financial Services Ltd. (Formerly known as CEAT Financial Services Ltd.) up to 18.4.2001 covering amounts aggregating
Rs. 51,47,307.00 for 194 depositors. Company Law Board has further issued an order on 26.6.2001 prescribing a schedule of
repayment covering a total of 93501 depositors with outstanding deposits of Rs. 1,58,99,62,756.00 (includes interest up to
maturity) maturing between 1.4.2000 to 31.3.2005. The Company`s position is closely monitored by the Bank. The Indian
Seamless Financial has merged with one of its associate companies, viz. Indian Seamless Securities Ltd. in terms of the final
order passed by the Hon`ble High Court on 23.11.2000 on the scheme of amalgamation. The Company had outstanding
deposits of Rs. 3.11 crore as on 31.10.2000. The Company Law Board had passed orders on 14.2.2000 and 23.2.2000 for 7
deposits of Rs. 0.78 lakh and 21 deposits of Rs. 2.43 lakh respectively. The Company has complied with the Company Law
Board orders by effecting payments as per the Scheme of Arrangement approved by the High Court vide its orders dated
23.11.2000. However, it has not submitted affidavits of compliance with the Company Law Board orders so far.
Annexure
NBFCs holding public deposits more than Rs. 20 crore (As on March 31, 2001)
Name of the Company Public Status Action taken against defaulting NBFCs Deposits (Rs. Lakhs)
ICDS Ltd. 13631 Temp. liquidity problem Nil Maha Rashtra Apex 15308 - do - -do- Corpn. Ltd.
Manipal Fin. Corpn. Ltd. 3575 - do - -do- Vijaya Comm. Credit Ltd. 3458 Defaulting company Application for Certification of Registration rejected and Prohibitory Order issued. Vijaya Leasing Ltd. 2449 -do- -do- Kirloskar Investment 9804 -do- Application for Certification of Registration (COR) rejected and winding up petition of the company filed in the Hon`ble Karnataka High Court. Criminal proceedings also have been initiated against the past Directors for violations of the RBI Act/Directions issued thereunder, as also for diversion of funds.
Samrudhi Saving & Inv.(I) 3919 -do- -do- Sundaram Finance Ltd. 67877 Normal Nil Ashok Leyland Fin. Ltd. 22436 -do- -do- Cholamandalam Inv. 18510 -do- -do- & Fin. Co. First Leasing Co. 8998 -do- -do- of (I) Ltd.
T.N. Transport Dev.Fin. 26096 -do- -do- Lakshmi Gen. Fin.Ltd. 13141 -do- -do- Annamali Finance Ltd. 5645 -do- -do- T.N.Ind. Dev.Corpn.Ltd. 16848+ -do- -do- T.N. Power Fin. 24308 -do- -do- & Infra.Dev.Ltd. Integrated Fin Co Ltd. 6424 -do- -do- India Cements Cap. 4230 -do- -do- & Fin. Ltd.
Fidelity Finance Ltd. 2400+ Defaulting company Show Cause Notice issued for non-payment of matured deposits. Bank has given six months time for repayment of deposits. The Invest.Trust of 3157 Normal Nil India Ltd.
Sahara India Fin. 3950 -do- -do- Corpn. Ltd. Krishi Export Comm. 5656 Defaulting company Application for COR rejected and Corpn. Ltd. Prohibitory Order issued. Winding up petition filed. Kuber Mutual Benefit 19279 -do- Denotified Nidhi. Bank has filed Ltd. (Denotified Nidhi) winding up petition.
In Can Mutual Benefit 6658 -do- Being a Notified Nidhi, the Bank has Ltd. (Notified Nidhi) taken up the matter with DCA who is in the process of denotifying it.
Peerless General Fin. 792225 Temp. liquidity problem Nil & Investment Co. Ltd.
Ceat Fin. Services Ltd. 12534 Defaulting company Supervisory letter issued. Nicco Ucom alliance 10006 Normal Nil Credit Ltd.
Janapriya Fin. & Inds. 3855 Defaulting company Application for COR rejected and Prohibitory Order issued. Investment IFB Fin.Ltd. 2721 -do- Application for COR rejected and Prohibitory Order issued.
West Bengal Industrial 8180+ Normal Nil Dev. Corpn. Ltd. West Bengal Infra. 2380+ -do- -do- Dev. Corpn.
Prudential Capital 4767 Defaulting company Application for COR rejected and & Markets Ltd. Prohibitory Order issued. Criminal complaint was filed for violation of CLB Order. Sanchayani Savings 59972 -do- Prohibitory Order issued, against & Inv. Co. Ltd. which company has filed cases in various Courts. Rapti Nidhi Ltd. 6266 -do- Application for COR rejected and Prohibitory Order issued. Tata Finance Ltd. 92842 Normal Nil Infrastructure Leasing & Fin. Services Ltd. 32235 -do- -do- Kotak Mahindra Fin.Ltd. 17344 -do- -do- Alpic Finance Ltd. 3248 Defaulting company Company stopped accepting public deposits. It has approached CLB for reschedulement for repaying deposits. Birla Global Fin. Ltd. 5258 Normal Nil L & T Finance Ltd. 8743 -do- -do- Lloyds Finance Ltd. 27965 Defaulting company Observer appointed. CLB has passed Order rescheduling repayment of public deposits. Mahindra & Mahindra 4142 Normal Fin. Services Ltd.
Kinetic Fincap Ltd. 3019 -do- Nil SICOM Ltd. 3906 -do- -do- Wall Street Fin. Ltd. 2019 -do- -do- Jayabharat Credit Ltd. 2995 -do- -do- Escorts Finance Ltd. 22115 -do- -do- DCM Fin. Services Ltd. 6285 Defaulting company Observer appointed. Company submitted plans for reorganization to the High Court at Delhi. MGF (I) Ltd. 3225 Temp. liquidity problem Nil Motor General Fin. Ltd. 10355 -do- -do-
+ Provisional