EXCEL BUSINESS LINKS P LTD Vs. UOI
HIGH COURT OF DELHI
EXCEL BUSINESS LINKS P LTD
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(1.) Rule. Mr. Ramesh Babu, Mr. Srinjoy Banerjee and Mr. Rajiv Mehra waive
notice of rule. With consent of parties, the matter was heard finally.
(2.) The petitioner seeks a direction for quashing of decisions of the
Reserve Bank of India (RBI) dated 4th September, 2000 and an order of the
Appellate Authority constituted under the Reserve Bank of India Act dated 13th
(3.) The appellant is a non-banking financial institution. After the
amendment of the Reserve Bank of India (Amendment) Act, 1934, by Act 23 of 1997
(which was brought into force on 09.01.97), non-banking financial institutions
were prohibited from conducting business without obtaining certificate of
registration under Chapter III B of the Act. One of the condition was that the
institution should have had a net owned fund of Rs. 25 lakhs or such other
amount not exceeding Rs. 200 lakhs as the RBI notified. This condition was to
an extent relieved by a "window" provision, namely, Section 45 IA (3) that
allowed existing non-banking financial institutions with net owned fund of less
than Rs. 25 lakhs to function for three years from 09.01.97 provided that such
company, within three months of fulfilling the requirement of possessing net
owned fund informed RBI for that purpose.;
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