9911796707
TMI Blog2008 (6) TMI 623X X X X Extracts X X X X X X X X Extracts X X X X ..... by the petitioner on 2.6.2008 before the opposite party no. 2 and by the impugned order dated 4.6.2008, the petitioner has been restrained from accepting deposits from the existing depositors and fresh depositors. He further submits that after the show cause notice dated 9.5.2008, on the request of the petitioner a meeting was held on 20.5.2008 and thereafter each point mentioned in the show cause notice was suitably replied by the petitioner in his reply dated 2.6.2008, but in a most hurriedly manner the impugned order has been passed. He further submits that the impugned order prohibits the petitioner from carrying on business as a Residuary Non-Banking Finance Company and as such violative of the fundamental right guaranteed under Artic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as duly considered by the competent authority before passing the impugned order. He further submits that the deposit taking activity of the petitioner was not inconformity with the prudent practices and the Reserve Bank of India directions and instructions and as such there is no illegality in the impugned order. He further submits that on the request of the petitioner, a meeting dated 20.5.2008 was convened in which the managing worker of the petitioner participated and even thereafter the irregularities were not removed and the Company has been continuously defaulting in maintenance of directed investments. We have considered the submissions made by the learned counsel for the parties and gone through the record. The petitioner is a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed to the petitioner before passing the impugned order. The petitioner has alleged that no complaints were ever made by the depositors to the Reserve Bank of India. As large number of investors/depositors will be affected by the impugned order as they will be deprived of depositing their money and continuing to deposit their money with the petitioner, in various schemes launched by the petitioner and large number of employees, agents, staff will lose their livelihood, we have no option except to stay the operation and enforcement of the impugned order dated 4.6.2008 till further orders of this Court. The petitioner shall not accept any new deposit whose maturity will be beyond June, 2010. Since the Reserve Bank of India has mention ..... X X X X Extracts X X X X X X X X Extracts X X X X
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