High Court freezes NBFCs account

Patna, Apr 10 (UNI) Patna High Court today froze the bank account of all defaulter Non Banking Financial Corporations (NBFC), which allegedly swindled Rs 12,000 crores deposited by the small investors across the state.

While hearing a PIL filed by the Council for the Protection of Public Rights and Welfare, seeking recovery of the swindled deposits made by investors of Bihar, a division bench of the court comprising Chief Justice J N Bhatt and Justice S K Sinha also directed the registrar of the companies to take action against 918 defaulter NBFCs. The bench has also directed the state government to file Action Taken Report regarding recovery of swindled money by May 22, the next date of hearing.

Meanwhile, the Registrar of the Companies today furnished the list of 918 defaulter companies before the court. The registrar also informed the bench that prosecution had already been initiated against 31 companies.

The state government had established a directorate to regulate the NBFCs for recovery of swindled money after a PIL was filed last year in this connection.

UNI