Hc Orders Liquidation Of Three Jvg Group Firms

The Delhi High Court has ordered liquidation of three companies of the New-Delhi based JVG group - JVG Finance Ltd, JVG Leasing Ltd and JVG Securities Ltd by appointing the official liquidator as the provisional liquidator, in response to a winding up petition filed by the Reserve Bank of India under section 45MC of the RBI Act, 1934.

The RBI also had filed criminal complaints against these companies and their directors in the chief metropolitan magistrates, Patiala House in New Delhi on May 29 and 30 this year.

The applications for issue of certificates of registration submitted by the companies had earlier been rejected by the RBI under section 45IA of the RBI Act, said an apex bank release.

 

The central bank has also filed a prosecution notice against another New-Delhi based company, Hoffland Finance, flagship of the Hoffland group, which was found to be carrying on the business of a non-banking financial institution without applying for certification of registration.

The prosecution application has hence been filed against the company and its directors for violation of provisions of the Act in the chief Metropolitan magistrate court, New Delhi. The application for certification of registration submitted by two other group companies, Hoffland Leasing Ltd and Hoffland Investments Ltd was rejected by the RBI in February this year.

A criminal petition has also been filed against Hyderabad-based Asia Pacific Investment Trust Ltd and its directors under section 58E read with sections 58B and 58C of the RBI Act, for violation of directions issued by the RBI.

"The RBI has taken these extreme steps in view of the fact that the financial position of the companies were not satisfactory, they were not complying with the directions issued by the RBI and a large number of complaints against these companies with regard to non-repayment of public deposits," the release said.