The Reserve Bank of India on Friday imposed monetary penalties on Godrej Housing Finance Ltd, Aadhar Housing Finance Ltd, and Housing and Urban Development Corporation Ltd over non-compliance.
Photo: Reserve Bank of India
The Reserve Bank of India on Friday imposed monetary penalties on Godrej Housing Finance Ltd, Aadhar Housing Finance Ltd, and Housing and Urban Development Corporation Ltd over non-compliance.
The central bank imposed a fine of Rs five lakh each on Godrej Housing Finance and Aadhar Housing Finance, and Rs 3.5 lakh on Housing and Urban Development Corporation.
The penalties have been imposed in the exercise of powers conferred on the RBI under the provisions of Section 52A of the National Housing Bank Act, 1987.
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The statutory inspection of the Godrej Housing Finance was conducted by the National Housing Bank with reference to its financial position as of 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,” said the RBI. After considering the company’s reply to the notice, the apex bank found that the following charge against the company was sustained, warranting the imposition of a monetary penalty.
“The company failed to obtain two independent valuation reports before sanctioning certain loans of Rs 75 lakh and above,” the RBI said in its statement.
In the case of Aadhar Housing Finance, the RBI found that the company “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 also 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 said.
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