RBI bars Chennai-based DFL Infra Finance for doing business

Reserve bank of India has barred Chennai-based DFL Infrastructure Finance Ltd (DFL) from doing further business following inspection of accounts and records of finance company.

RBI in statement said it took step (stop doing business) to protect public interest. The finance company can’t sell, transfer, create charge or mortgage or deal in any manner with its property and assets without prior written permission of regulator.

RBI, however, did not give findings of inspection nor reasons leading to such action against the finance company.

DFL, formerly Dhandapani Finance Limited, is RBI registered a Non Banking Financial Company. It is finances vehicles including tractors, construction equipments and commercial vehicles.

The finance company is also barred from declaring or distributing dividend. It is restrained from transacting any business or incur further liabilities, RBI said.