New Delhi: The Reserve Bank has restricted DFL Infrastructure Finance to conduct business activities without its prior permission as the company was found to be concealing and misrepresenting its financial position.
In a regulatory filing to the BSE, the company Tuesday said that it be won't be allowed to sell, transfer, create charge or mortgage or deal in any manner with its property and assets without prior written permission from RBI.
"An inspection of the books of accounts of the company done recently revealed certain disquieting feature, including concealment and misrepresentation of its financial position by the company," RBI had said in a release in February.
DFL Infrastructure Finance said the directive came from the RBI following the findings of the inspection of the books and accounts and other records as on March 31, 2013.
RBI said these directions were issued as an emergency measure to prevent any further damage to the financial position of the company.
"...The RBI has, in public interest and in exercise of the powers conferred on it directed that until further orders, DFL Infrastructure Finance Ltd shall not, sell, transfer, create charge or mortgage or deal in any manner with its property and assets without prior written permission of the RBI."
Further, the company has also been disallowed to declare or distribute any dividend, transact any business as well as incur any further liabilities.
DFL Infrastructure Finance Limited (DFL), formerly known as Dhandapani Finance and Investments Private Limited was formed in 1986 and was changed to DFL later on.
DFL, a Non-Banking Financial Company, is registered with RBI as Hire Purchase and Leasing Company.
The company is primarily engaged in the business of financing of tractors, construction equipment, commercial vehicles and other passenger carrying multi utility vehicles, cars.
Shares of the company today fell as much as 4.93 per cent to close the business at Rs 9.45 apiece on the BSE.
