Eight cases pending with CLB benches on default by NBFCs

Last Updated: Thursday, December 6, 2012 - 16:01

New Delhi: The Ministry of Corporate Affairs today said eight cases related to default in repayment of deposits by Non-Banking Financial Companies were pending with regional benches of the Company Law Board.

There were eight cases pending as on November 30, 2012, Corporate Affairs Minister Sachin Pilot told the Lok Sabha in a written reply.

During the last three financial years, 12 applications were received from the NBFC depositors in the regional benches of the CLB for default in repayment of deposits on due dates, the minister said.

Of the 12, seven applications -- involving Rs 3.73 lakh -- came before the New Delhi bench while Kolkata bench had two applications where the total amount was Rs 4.35 lakh.

Chennai bench received two applications, involving Rs 3.60 lakh, and Mumbai bench had one where the amount was Rs 14,000.

Pilot said, "Two depositors have been benefitted".

To a query on whether the government plans to expedite the judicial process by providing more and easy legal framework, Pilot said, "the existing arrangements appears to be running" satisfactorily.

The Reserve Bank is the regulatory body to take penal action against NBFCs for their failure to repay the deposits.

On whether the government has taken up the matter of simplifying rules to benefit small depositors with the RBI, the Minister replied in the negative.


First Published: Thursday, December 6, 2012 - 16:01

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