RBI asked to file report on assets of defaulting NBFCs

Patna, May 22 (UNI) Patna High Court today directed the Reserve Bank of India(RBI)to file an affidavit by August 6 stating details of movable and immovable assets of 918 ''fly by night'' defaulter non banking financial companies(NBFCs).

The court sought reports on the amount saved in their frozen accounts in different branches of various nationalised banks.

A division bench of the court comprising Chief Justice J N Bhatt and Mr Justice S K Sinha passed the order while hearing a public interest petition filed by Council for Protection of Public Rights.

The Court also directed the Bihar government to constitute a special cell to monitor the recovery process of public deposits swindled by the defaulting NBFCs.

The state government pleader submitted before the court that the Bihar government had circulated public notice through news papers inviting complaints from the people to gather informations on the deposits swindled by the erring NBFCs.The pleader further informed the court that more than four thousand complaints had been received as per the reports received from 15 districts so far.

The counsel of the RBI informed the court that in pursuance of an earlier order of the court,the RBI had directed the nationalised banks on April 30 to stop transaction on the accounts of defaulting NBFCs.

Earlier, the Council for Protection of Public Rights had filed a public interest litigation petition seeking directive of the court to the state government and RBI for recovery of the money deposited in 918 ''fly night'' NBFCs by the people in Bihar.

UNI