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Reserve Bank had declared 108 Non Banking Financial Companies (NBFCs) as vanishing companies during the last three years, Rajya Sabha was informed today.  “Whenever a company is declared as vanishing the matter is referred to the Economic Offences Wing of the concerned state government,” Minister of State for Finance Namo Narain Meena said in a written reply.

The onus is on the state police machinery to investigate the case and take legal action as deemed appropriate, including penal action as per Indian Penal Code or Criminal Procedure Code, he said.

It is mandatory that every NBFC should be registered with RBI to commence or carry on any business of non-banking financial institution, he said.

RBI has been empowered to impose penalty on NBFCs for violation of the provisions of the RBI Act 1934.

In order to protect the interest of investors, he said, RBI has strengthened market intelligence system for picking early warning signals about the health of a particular NBFC and take preemptive action.

In another reply, Meena said based on the recommendations of the Vaidyanathan Task Force II, the government had approved the Revival Package for Long Term Cooperative Credit Structures with a total outlay of Rs 3,070 crore.

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  1. RABATAN says:

    As invited by Mr. Sanjib Sahu, I am venturing to add to these columns some inputs from personal memories of the past history taking advantage of my old age.

    The history of playing with the money of the general, small investors’ money/savings in this country originated in “good, old days of the British Raj” and in the then Calcutta, when the native owners of jute mills and share brokers in the Calcutta Stock Exchange (the famous Royal Exchange) started the long (and now well-established, duly supported by our very own government right from the advent of a divided independence) tradition of looting and openly destroying the community of low-and-middle-income group share-holders. Starting from the days of the rise and fall of the great landlords-cum-creative family of the Tagore’s companies, through the episodes in the Jute shares/companies/Nath Bank/the Mundhra-vs-Birla mysteries/the Justice Vivian Bose Commission’s Report on the LIC’s complicity in these cases/the famous but forgotten case of cornering of Escorts’ shares/the Westinghouse episode/the 60-lakhs rupees caseof the SBI… and right upto the “modern age perfected games” of the cornering of shares/Harshad Mehta’s rise and fall with the ruling classs’s open/tacit support right upto the latest and still unravelling jewels of the IPL-related filth, in our long and age old tradition of having the world’s finest system of systematically cheating and destroying the ordinary investing public (apart from the greedy investors fronting mainly for the politicians and the top most bureaucrats for decades), we have now institutionalised this system further by the time-tested democratic system through the most native culture of “Politics of Aya-Ram-Gaya-Ram” for retaining power by using the CBI, the CBEC, the DRI, the RAW, the IB, the CPIO, the Enforcement Directorate, the MCA, and what not.
    Mr. Sahu would thus appear to be rather naive to suggest the establishment of “special police stations to deal with economic offences” through “necessary enactment”. The police is and has all along been an essential arm of the State to maim/harass/loot/murder the ruled-the common people without any assured democratic rights/voice, and only the amount of the black (read:bribe) money in circulation will go up along with the prices!

    It is the strengthening of the moral fibre of this nation which has to be patiently (most probably with the full knowledge of ultimate failure though)attempted to stem the rot like the Sumitra Banerjees/Madhuri Guptas/Ketan Shahs/IPL Lords-&-Ladies/the political benamies/and, of course, the ruling parties’ total disinclination to be transparent in their dealings with the opposition and the vice versa.

    I submit with respect and with no malice towards Mr. Sahu that, involvement of the police in these specialised areas and further enactment of new laws will only succeed in doing irreparable damage to the interests of the public and the already damaged body-politic.

    If we want to fight this war, we must do it in the existing system by enlisting the support of the enlightened people who are prepared to suffer the atrocities of the State (under either the HAND or the SAFFRON or the REDS, whatever, for that is the universal rule!)and by educating the common public. And also by telling them to intelligently try to understand the real history and genesis of the partition of India-the true beginnings of today’s situation in India lie therein!

  2. CS SANJIB SAHU. says:

    Indian investing public shall go on winessing the companies incorporated under the relevant statue with a fradulent intent to defraud them .Unless the GOI shall come up necessary enactment for establishment of special police stations to deal with economic offences in the IPC, the public sufferings from being defrauded shall continue.

  3. ABAN says:

    May the people know the basis on which the declaration was done, in the name and for the sake of “transparency” ? Otherwise, it would appear to be yet another exercise in creating a (false?) impression of protecting some particular persons/groups.
    And, why not create a high-powered, inter-disciplinary committee from specialised services, and not the generalists alone from the Min of Corp Affairs to do these technically specialised jobs? Or, is it also basically a part of the strategy of the ruling power/political elites?

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May 2024