RBI imposes penalties on Godrej Housing and HUDCO
ECONOMY & POLICY

RBI imposes penalties on Godrej Housing and HUDCO

The Reserve Bank of India (RBI) has imposed monetary penalties on three Non-Banking Financial Companies (NBFCs) for failing to comply with its directions regarding housing finance companies. These penalties were imposed by the RBI under the provisions of Section 52A of the National Housing Bank Act, 1987. According to the RBI, the National Housing Bank (NHB) conducted a statutory inspection of these companies, with reference to their financial positions as of 31st March 2022.

The RBI explained that, based on supervisory findings of non-compliance with its directions and related correspondence, the companies were issued notices. They were asked to show cause as to why a penalty should not be imposed for their failure to comply with the RBI?s guidelines.

In the case of Aadhar Housing Finance Limited, the RBI noted that the company had charged interest on loans for a period before the actual disbursement of the loan or issuance of the cheque to certain borrowers, which was in violation of the RBI's 'Fair Practices Code.' As for the Housing and Urban Development Corporation Limited, the penalty was imposed due to the company's failure to conduct risk categorisation of its customers during the financial year 2021-22, lack of a system for periodic review of risk categorisation, and failure to create a floating charge on its assets, as required under Section 29B of the NHB Act, in favour of its depositors, and register it with the Registrar of Companies.

Redefine the future of urban mobility! Join us at the Metro Rail Conference 2025 to explore groundbreaking ideas and insights. 👉 Register today!

The Reserve Bank of India (RBI) has imposed monetary penalties on three Non-Banking Financial Companies (NBFCs) for failing to comply with its directions regarding housing finance companies. These penalties were imposed by the RBI under the provisions of Section 52A of the National Housing Bank Act, 1987. According to the RBI, the National Housing Bank (NHB) conducted a statutory inspection of these companies, with reference to their financial positions as of 31st March 2022. The RBI explained that, based on supervisory findings of non-compliance with its directions and related correspondence, the companies were issued notices. They were asked to show cause as to why a penalty should not be imposed for their failure to comply with the RBI?s guidelines. In the case of Aadhar Housing Finance Limited, the RBI noted that the company had charged interest on loans for a period before the actual disbursement of the loan or issuance of the cheque to certain borrowers, which was in violation of the RBI's 'Fair Practices Code.' As for the Housing and Urban Development Corporation Limited, the penalty was imposed due to the company's failure to conduct risk categorisation of its customers during the financial year 2021-22, lack of a system for periodic review of risk categorisation, and failure to create a floating charge on its assets, as required under Section 29B of the NHB Act, in favour of its depositors, and register it with the Registrar of Companies.

Next Story
Real Estate

Colliers India Transacts 207,000 sq ft office space at Embassy TechVillage

Embassy Office Parks REIT, India’s first listed REIT and the largest office REIT in Asia by area, announced that it has signed an Agreement to Lease (‘ATL’) with global cyber security company Rubrik at Embassy TechVillage in Bengaluru.Colliers, a leading global diversified professional services company, specialising in commercial real estate services, engineering consultancy and investment management facilitated the transaction for Rubrik.Located on Bengaluru’s Outer Ring Road, Embassy TechVillage is one of Embassy REIT’s flagship office parks which offers world-class office spaces, ..

Next Story
Infrastructure Urban

Ensemble Infrastructure India Appoints Suman Saha as Director of Design

Ensemble Infrastructure India Ltd, a leading workplace design and build fit-out company, has appointed Suman Saha as its new Director of Design. With 25 years of experience in the industry, Suman is recognized for his innovative approach and excellence in design leadership.Working closely with the CEO, Suman’s appointment will enhance the company’s design communication across multiple touchpoints, ensuring smooth collaboration between clients, designers, and execution teams for superior project outcomes. Under his guidance, Ensemble will focus on creating workspaces and design labs that em..

Next Story
Products

Ribbon Vanity by Küche7: Fluid Design Meets Everyday Elegance

Küche7, pioneers in luxury stainless steel kitchens, have unveiled the Ribbon Vanity, a graceful creation that transforms bathroom spaces with its soft, flowing design and understated sophistication. Inspired by the fluid form of a ribbon, this vanity combines smooth finishes, clean lines, and gentle curves, offering a timeless aesthetic that seamlessly complements diverse interior styles.Available in a refined blush pink hue, the Ribbon Vanity effortlessly merges functionality with elegance. With thoughtfully designed storage options, it ensures that bathroom essentials are neatly organised ..

Hi There!

"Now get regular updates from CW Magazine on WhatsApp!

Join the CW WhatsApp channel for the latest news, industry events, expert insights, and project updates from the construction and infrastructure industry.

Click the link below to join"

+91 81086 03000