The company changed its shareholding beyond 26% of its paid-up equity capital without taking prior approval from RBI. This is a violation of the RBI’s NBFC guidelines under the 2016 Master Direction and the 2023 Scale Based Regulation rules.

MUMBAI (India CSR): The Reserve Bank of India (RBI) has imposed a monetary penalty of Rs. 1 lakh on Ayodhya Finlease Limited for violations of regulatory norms governing Non-Banking Financial Companies (NBFCs). The action, announced on August 21, follows an order issued on August 14, 2025, under provisions of the RBI Act, 1934.

Nature of Violation

According to RBI, the company failed to obtain prior written permission from the central bank before effecting a change in shareholding exceeding 26 percent of its paid-up equity capital. Such prior approval is a mandatory requirement under the Master Direction – Non-Banking Financial Company – Non-Systemically Important Non-Deposit Taking Company (Reserve Bank) Directions, 2016, read with the RBI (Non-Banking Financial Company – Scale Based Regulation) Directions, 2023.

This omission, regulators say, reflects lapses in compliance with statutory obligations placed on NBFCs, which are critical for ensuring transparency and financial discipline within the sector.

RBI’s Investigation and Proceedings

The central bank initiated correspondence with Ayodhya Finlease Limited after noticing discrepancies in compliance. Following this, RBI issued a show-cause notice to the company, seeking an explanation as to why a penalty should not be imposed.

After reviewing the company’s written reply and considering oral submissions made during a personal hearing, RBI found the charge sustained. Consequently, it decided to impose a monetary penalty.

RBI Clarifies Scope of Action

The banking regulator clarified that the penalty is a result of deficiencies in regulatory compliance and should not be interpreted as questioning the legality of any transactions or agreements between Ayodhya Finlease and its customers.

The RBI also underlined that this action is without prejudice to further regulatory or enforcement measures that may be considered against the company in future, should other lapses be identified.

Broader Regulatory Context

The imposition of penalties on NBFCs has been a recurring feature of RBI’s supervisory approach, especially in the post-IL&FS era where stronger oversight of shadow banking entities has become a policy priority. By tightening compliance checks, RBI aims to strengthen governance standards and safeguard the stability of India’s financial system.

Industry experts note that penalties, though often modest in value, carry significant reputational impact. “Even a Rs. 1 lakh penalty signals that RBI is closely watching compliance lapses in NBFCs, no matter the size. This step reinforces regulatory discipline,” said a Delhi-based financial consultant.

(India CSR)

Ayodhya Finlease Limited – Company Profile

Basic Information

• CIN: U74900DL1995PLC065114
• Company Name: Ayodhya Finlease Limited
• Date of Incorporation: 06 February 1995
• Company Status: Active
• Company Category: Company limited by shares
• Company Sub-Category: Non-government company
• Company Class: Public
• Business Activity: Business Services
• Listing Status: Unlisted

Capital Structure

• Authorised Capital: ₹350.0 lakhs
• Paid-up Capital: ₹115.4 lakhs
• Paid-up Capital (%): 32.972%

Compliance & Financials

• Last AGM Held On: 30 September 2017
• Last Balance Sheet Filed On: 31 March 2017
• Registrar Office City: Delhi
• Registered State: Delhi
• Registration Number: 65114

Registered Address

M-3, Dewan House, Ajay Enclave, Subhash Naga, New Delhi – 110018, India.

Board of Directors

1. Anil Kumar Agrawal
   • DIN: 00134884
   • Appointment Date: 25 June 2016
2. Kailash Chander Aggarwal
   • DIN: 00223304
   • Appointment Date: 26 June 2001
3. Shailesh Chandra Gupta
   • DIN: 00311997
   • Appointment Date: 17 November 2014
4. Ashwani Kumar Mehta
   • DIN: 01271688
   • Appointment Date: 11 July 2001

Key Highlights

• Incorporated over 30 years ago, the company has remained active in the business services sector.
• The company has not filed financials after FY 2016-17, indicating outdated compliance status with MCA.
• Its last Annual General Meeting (AGM) was held in 2017.

Source

• Ministry of Corporate Affairs (MCA), Govt. of India.
• Data last updated: 04 December 2018.
• www.mca.gov.in