J&K&L HC: Matrimonial Remedies May Overlap, But Cruelty Claims Cannot be Selectively Invoked  ||  Delhi High Court: Customs Officials Acting Officially Cannot be Cross-Examined as of Right  ||  J&K&L HC: Second Arbitral Reference is Maintainable if Award is Set Aside Without Deciding Merits  ||  J&K&L HC: Gold Voluntarily Given to Customer is 'Entrustment'; Theft Excluded from Insurance Cover  ||  Delhi HC: Working Mothers Cannot be Forced to Bear Full Childcare Burden While Fathers Evade Duty  ||  J&K&L HC: Arbitral Tribunal Not a “Court”; Giving False Evidence Before it Doesn’t Attract S.195 CrPC  ||  Calcutta HC: Award May Be Set Aside if Tribunal Rewrites Contract or Ignores Key Clauses  ||  Delhi HC Suspends Kuldeep Singh Sengar’s Life Term, Holding Section 5(C) of POCSO Not Made Out  ||  Calcutta High Court: Arbitration Clause in an Expired Lease Cannot be Invoked For a Fresh Lease  ||  Delhi High Court: 120-Day Timeline under Section 132B Of Income Tax Act is Not Mandatory    

RBI imposes monetary penalty on LIC Housing Finance Limited, Mumbai- (Reserve Bank of India) (31 Oct 2022)

MANU/RPRL/0505/2022

Banking

The Reserve Bank of India (RBI) has, by an order dated October 21, 2022, imposed a monetary penalty of Rs. 5.00 lakh (Rupees Five lakh only) on LIC Housing Finance Limited, Mumbai (the company) for non-compliance with certain provisions of "The Housing Finance Companies (NHB) Directions, 2010" issued by the National Housing Bank (NHB) on July 02, 2018 read with the press release dated August 13, 2019 issued by the Reserve Bank of India (the Bank) on "Transfer of Regulation of Housing Finance Companies (HFCs) to Reserve Bank of India". This penalty has been imposed in exercise of powers vested in RBI under the provisions of clause (b) of sub-section (1) of section 52A read with clause (aa) of sub-section (3) of section 49 of the National Housing Bank Act, 1987 (NHB Act).

This action is based on the deficiencies in regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by the company with its customers.

Background

The statutory inspection of the housing finance company, conducted by NHB with reference to its financial position as on March 31, 2020 and examination of the Inspection Report, supervisory letter and all related correspondence pertaining to the same revealed, the company's failure to create floating charge in favour of its depositors on a portion of the assets invested by it in terms of section 29B of NHB Act, and non-registration of such charge with the Registrar of Companies. In furtherance to the same, a notice was issued to the company advising it to show cause as to why penalty should not be imposed on it for failure to comply with the statutory directions, as stated therein.

After considering the company's reply to the notice, examination of additional submissions made by it and oral submissions made during the personal hearing, RBI came to the conclusion that the charge of non-compliance with the aforesaid statutory directions was substantiated and warranted imposition of monetary penalty.

Tags : PENALTY   IMPOSITION   NON-COMPLIANCE  

Share :        

Disclaimer | Copyright 2025 - All Rights Reserved