Legal Question in Banking Law in India

Arcil functioned violating securitisation act

u/s 3.1.b of SRFAESI Act, NO securitisation Company(SC)can carry on function of securitisation or asset reconstruction without having minimum owned fund as specified by RBI. In Notification dated 29.03.04 RBI notified that SC shall have min. owned fund of Rs.100 Crores within 3 months i.e before 29.06.2004. However, Arcil managed to increase its Owned fund upto Rs. 100 Crores on 25.10.04. There is no RBI notification for extending the said time limit. Arcil carried on business violating the said RBI norms, and hence liable to be punished u/s 28 and 29 of the SRFAESI Act. There is no proviosion in section 12 of said Act empowiring RBI to grant any exemption of time limit with respect to Owned fund. Arcil illegally representing and taking action in the courts and tribunal violating both RBI norms and SRFAESI Act. RBI and MOF are silent. No one dare to question the said ARCIL illegal acts. The content of my letter is on www.bankdrt.com. Please publicise this fact to Industrialists who were and will be targets of ARCIL illegal acts. In fact ARCIL registration should be cancelled and every officer of the ARCIL should be penalised/ fined as per law.


Asked on 12/29/05, 8:01 am

1 Answer from Attorneys
Pravin Vaidya Independent

Re: Arcil functioned violating securitisation act

What is the question is not clear..This facility of offring free guidance is for genuine personal problem and not for propagating any personal views/opinions

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Answered on 12/30/05, 11:53 am


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