Money‑lending and financing transactions by erstwhile banks taken up and carried on after nationalisation.

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..... ed by exemption under clause (iii) of sub ‑ section (2) In the case of an erstwhile banking company whose banking business was nationalised, it was found that the company had utilised the compensation received in advancing substantial funds to other companies of the same group on the authority of a special resolution passed subsequent to the nationalisation. The question whether these a .....

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..... f banking. Even though the power to finance industries was incidental to the main business of banking, the company will not be covered by the exemption under section 370(2). This is being brought to the notice of all officers so as to ensure that all such companies comply with the provisions of section 370 in respect of their money‑lending and financing transactions taken up and carried on .....

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