NHB imposes penalty of Rs29.13 lakh on Can Fin Homes; stock trades flat

NHB had observed that the Company had accepted individual deposits aggregating to Rs14,56,617/- from five small depositors for a period of less than 12 months, in contravention with provisions of Para 4 of the HFCs (NHB) Directions, 2010.

Jun 15, 2021 02:06 IST India Infoline News Service

National Housing Bank (NHB) on Monday has imposed a penalty of Rs29.13 lakh on Can Fin Homes.

In the regulatory filing, NHB had observed that the Company had accepted individual deposits aggregating to Rs14,56,617/- from five small depositors for a period of less than 12 months, in contravention with provisions of Para 4 of the HFCs (NHB) Directions, 2010.

The Company had replied to NHB that five deposits aggregating to Rs.14,56,617/- (out of about 4000 deposits), were accepted in the year 2018-19 for a tenure of less than 12 months by three of its branches inadvertently. NHB has imposed a penalty of twice the amount of deposits collected, i.e., Rs.29,13,234/-

“Based on the examination of the issue including the submission made in the company in the matter, the National Housing Bank has decided to levy a penalty of Rs29,13,234 /- (Rupees Twenty-Nine Lakhs Thirteen Thousand Two Hundred Thirty Four Only) plus applicable GST @ 18% on account of acceptance or renewal of public deposit for a period of less than 12 months (5 cases) which is in contravention of the provisions of Para 4 of the HFCs (NHB) Directions, 2010. Accordingly, company is directed to credit the penalty amount of Rs29,13,234/- plus applicable GST @ 180%, as per the Bank details enclosed at Annexure-I, within 14 days from the date of receipt of this letter.

The stock is currently trading at Rs522.60 up by Rs0.1 or 0.02% from its previous closing of Rs522.50 on the BSE. The scrip opened at Rs524 and has touched a high and low of Rs531.45 and Rs521.55 respectively.

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