High court suspends DRDA's order against SKS Microfinance

Last Updated: Friday, June 22, 2012 - 20:47

Hyderabad: SKS Microfinance Friday said that Andhra Pradesh High Court has issued an interim order suspending District Rural Development Agency's notice to cancel the company's registration in Mahabubnagar district.

In a filing to the BSE, SKS said, "Following a petition filed by SKS Microfinance, the Honourable Andhra Pradesh High Court issued an interim order suspending the District Rural Development Agency's notice cancelling SKS Microfinance's registration in Mahabubnagar district."

SKS did not specify when the court passed the interim order.

DRDA had cancelled the registration of SKS Microfinance in Mahabubnagar for allegedly not following rules.

According to a letter issued by the authority to SKS, the agents of the company visited individual houses for collection, in violation of Andhra Pradesh Microfinance Institutions (Regulation of Money Lending) Act, 2010.

SKS then filed a petition in the High Court challenging the DRDA order.

Shares of SKS closed at Rs 65.45 apiece on BSE Friday.

PTI

First Published: Friday, June 22, 2012 - 20:47
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