DFL Infra restricted by RBI to conduct biz without permission
Mar 18 2014 , New Delhi
In a regulatory filing to the BSE, the company today said that it be won't be allowed to sell, transfer, create charge or mortgage or deal in any manner with its property and assets without prior written permission of Reserve Bank.
"...The RBI has, in public interest and in exercise of the powers conferred on it directed that until further orders, DFL Infrastructure Finance Ltd shall not, sell, transfer, create charge or mortgage r deal in any manner with its property and assets without prior
written permission of the RBI," the regulator said in a release in February.
DFL Infrastructure Finance said the directive came from the RBI following the findings of the inspection of the books and accounts and other records as on March 31, 2013.
Further, the company has also been disallowed to declare or distribute any dividend, transact any business as well as incur any further liabilities.
However, RBI did not provide with details of inspection that led to barring the company from conducting business activities.
DFL Infrastructure Finance Limited (DFL), formerly known as Dhandapani Finance and Investments Private Limited was formed in 1986 and was changed to DFL later on.
It is a Non-Banking Financial Company registered with RBI as Hire Purchase and Leasing Company.
The company is primarily engaged in the business of financing of tractors, construction equipment, commercial vehicles and other passenger carrying multi utility vehicles, cars.