New Delhi: The Reserve Bank of India on Friday enforced financial fines on Godrej Housing Finance Ltd, Aadhar Housing Finance Ltd, and Housing and Urban Development Corporation Ltd over non-compliance.
The reserve bank enforced a penalty of Rs 5 lakh each on Godrej Housing Finance and Aadhar Housing Finance, and Rs 3.5 lakh on Housing and Urban Development Corporation.
The fines have actually been enforced in the workout of powers gave on the RBI under the stipulations of Section 52A of the National Housing Bank Act, 1987.
The legal evaluation of the Godrej Housing Finance was performed by the National Housing Bank with recommendation to its monetary placement since March 31, 2022.
.
.
“Based on the supervisory findings of non-compliance with RBI directions and related correspondence in that regard, a notice was issued to the company advising it to show cause as to why penalty should not be imposed on it for its failure to comply with the said directions,” claimed the RBI.After thinking about the firm’s respond to the notification, the pinnacle financial institution discovered that the complying with fee versus the firm was maintained, necessitating the charge of a financial charge.
“The company failed to obtain two independent valuation reports before sanctioning certain loans of Rs 75 lakh and above,” the RBI claimed in its declaration.
.
.
In the instance of Aadhar Housing Finance, the RBI discovered that the firm “charged interest on loans for a period prior to the date of actual disbursement of loan/issuance of a cheque to certain borrowers in contravention of RBI directions on ‘Fair Practices Code'”.
.
.
Housing and Urban Development Corporation “failed to undertake risk categorisation of its customers during the financial year 2021-22 and did not put in place a system for periodic review of risk categorisation of accounts”.
.
.
It likewise did not “create floating charge on the assets invested by it in terms of Section 29B of NHB Act, in favour of its depositors and register the same with the Registrar of Companies”, the RBI claimed. . .
