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The Reserve Bank of India (RBI) has imposed monetary penalties on three housing finance companies for non-compliance with regulatory directions issued under the National Housing Bank Act, 1987 and RBI guidelines.
Godrej Housing Finance Limited – ₹5 lakh
RBI found that the company failed to obtain two independent valuation reports before sanctioning certain loans of ₹75 lakh and above, in violation of the Non-Banking Financial Company – Housing Finance Company Directions, 2021.
Aadhar Housing Finance Limited – ₹5 lakh
RBI found that the company charged interest on loans prior to the actual disbursement date for certain borrowers, contravening the RBI’s Fair Practices Code under the Housing Finance Directions, 2021.
Housing and Urban Development Corporation Limited (HUDCO) – ₹3.5 lakh
RBI observed that HUDCO failed to undertake risk categorization of customers during FY 2021-22 and did not create a floating charge on invested assets in favor of depositors, contrary to KYC Directions, 2016, and Housing Finance Directions, 2021.
RBI emphasized that these penalties arise from deficiencies in regulatory compliance and do not affect the validity of any transaction or agreement. Further actions may be initiated by RBI against these entities.
[RBI]